Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 500,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $25. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,240 10,600 13,600 770 26,210 $ 1,380 7,600 10,700 560 20, 240 10,700 43,631 54,331 $80,541 10,700 41,168 51,868 $72,108 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $18,900 1,070 170 140 $19,000 820 170 8,700 28,840 8,700 28,690 500 4,000 4,500 47,201 51,701 $80,541 500 4,000 4,500 38,918 43,418 $72,108 Last Year $64,000 32,000 32,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $69,000 Cost of goods sold 35,000 Gross margin 34,000 Selling and administrative expenses: Selling expenses 11,300 Administrative expenses 7,400 Total selling and administrative expenses 18,700 Net operating income 15,300 Interest expense 870 Net income before taxes 14,430 Income taxes 5,772 Net income 8,658 Dividends to common stockholders 375 Net income added to retained earnings 8,283 Beginning retained earnings 38,918 Ending retained earnings $47,201 10,900 6,100 17,000 15,000 870 14,130 5,652 8,478 200 8,278 30,640 $38,918 Required: Compute the following financial data and ratios for this year: 1. Working capital. (Enter your answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 1. Working capital 2. Current ratio 3. Acid-test ratio
