Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, 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 the year was $29. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,150 S 1,310 Accounts receivable, net 9,500 8,100 Inventory 12,600 10,700 Prepaid expenses 650 600 Total current assets 23,900 20,710 9,900 42,335 9,900 38,295 Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets 52,235 48,195 $76,135 $68,905 $19,200 1,020 260 $18,500 810 260 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities 20,480 19,570 8,000 8,000 28,480 27,570 Stockholders' equity: Common stock Additional paid-in capital 700 4,000 700 4,000 4,700 42,955 4,700 36,635 Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 47,655 41,335 $76,135 $68,905 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $72,000 $65,000 Cost of goods sold 42,000 37,000 Gross margin 30,000 28,000 Selling and administrative expenses: Selling expenses 11,400 10,300 Administrative expenses 6,800 6,200 Total selling and administrative expenses 18,200 16,500 Net operating income 11,800 11,500 Interest expense 800 800 Net income before taxes Income taxes 11,000 4,400 10,700 4,280 6,600 280 6,420 525 Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 6,320 36,635 5,895 30,740 $42,955 $36,635 Required: Compute the following financial data and ratios for this year. 1. Working capital. (Enter your answer in thousands) Working capital 2. Current ratio. (Round your answer to 2 decimal places.) Current ratio 3. Acid-test ratio. (Round your answer to 2 decimal places.) Acid-test ratio Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company's current assets, current liabilities, and sales have been reported as follows over the last five years (Year 5 is the most recent year): Year 1 Year 2 Year 3 Year 4 Year 5 Sales $4,627,980 $4,827,400 $5,112,910 $5,577,180 $5,788,740 $ Cash Accounts receivable, net Inventory 88,411 403,259 818,409 $ 97,586 $ 88,799 $80,784 $ 69,376 428,436 445,365 504,511 563,558 877,231 824,504 898,838 897,221 Total current assets $1,310,079 $1,403,253 $1,358,668 $1,484,133 $1,530,155 Current liabilities $ 312,058 $ 339,069 S 328,394 S 331,053 $ 391,845 Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Year 1 Year 2 Year 3 Year 4 Year 5 % % % % % Sales Current assets: Cash Accounts receivable Inventory Total current assets Current liabilities
