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 700,000 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 the year was $24. All of the company's sales are on account. This Year Last Year $ 1,260 9,88 13,700 610 25, 37e $ 1,350 8.ee 11,100 ge 21 230 1e, lee 45,646 55,746 581, 116 10,100 37653 42,753 $68,883 Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 $2,400 980 100 21,50 $17,500 86 190 18,55e 9.780 28,250 7 4, en 4,70 45.100 19. $81,116 be Bee 4700 35.933 5 Last Year $65,000 38,00 27,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $74, eee Cost of goods sold 39, eee Gross margin 35,00 Selling and administrative expenses: Selling expenses le, 7ee Administrative expenses 7,100 Total selling and administrative expenses 17,880 Net operating income 17,280 Interest expense 970 Net income before taxes 16,230 Income taxes 6,492 Net income 9,738 Dividends to common stockholders 525 Net income added to retained earnings 9,213 Beginning retained earnings 35,933 Ending retained earnings $45, 146 18,600 6,900 17,500 9,500 970 8,530 3,412 5,118 525 4,593 31,340 $35,933 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
