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 600,000 shares of common stock were outstanding. The nterest 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 $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,260 10,800 12,000 620 24,680 $ 1,410 7,800 10,900 660 20,770 9,200 44,790 53,990 $78,670 9,200 39,640 48,840 $69,610 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: stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $18,700 1,000 270 19,970 $18, 200 780 270 19,250 9,000 28,970 9,000 28,250 Common sts 600 4,000 4,600 45,100 49,700 $78,670 600 4,000 4,600 36,760 41,360 $69,610 Last Year $65,000 36,000 29,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 73,000 Cost of goods sold 40,000 Gross margin 33,000 Selling and administrative expenses: Selling expenses 11,100 Administrative expenses 6,600 Total selling and administrative expenses 17,700 Net operating income 15,300 Interest expense 900 Net income before taxes 14,400 Income taxes 5,760 Net income 8,640 Dividends to common stockholders 300 Net income added to retained earnings 8, 340 Beginning retained earnings 36,760 Ending retained earnings $45,100 10,900 6,500 17,400 11,600 900 10,700 4,280 6,420 300 6,120 30, 640 $36,760 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
