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 $26. All of the company's sales are on account A32 265.852 Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,260 $ 1,370 Accounts receivable, net 9,580 8,180 Inventory 12,100 12,300 Prepaid expenses 610 680 Total current assets 23,470 22,450 Property and equipment: Land 10,200 10,200 Buildings and equipment, net 33,201 Total property and equipment 53,532 43,401 Total assets $77,092 $65,851 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $19,600 $17,900 Accrued liabilities 1,060 780 Notes payable, short term 260 260 Total current liabilities 20,920 18,940 Long-term liabilities: Bonds payable 8.900 8.900 Total liabilities 29,820 27,840 Stockholders equity: Common stock So see Additional paid-in capital 4.000 Total paid in capital 4,500 Retained earnings 33,511 Total stockholders equity 47,182 38,011 Total liabilities and stockholders' equity 577,902 565,851 0,500 4,909 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Total stockholders' equity 147, 1821138,011 Total liabilities and stockholders' equity $77,002 $65 851 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $69,000 $65,000 Cost of goods sold 35,800 42,000 Gross margin 34,000 23,000 Selling and administrative expenses: Selling expenses 10,700 10,700 Administrative expenses 6.58 6,000 Total selling and administrative expenses 17,200 16,700 Net operating income 16,800 6,300 Interest expense 890 Net income before taxes 15,919 5,410 Income taxes 6, 364 2,164 Net income 9,546 3,246 Dividends to common stockholders 375 375 Net Income added to retained earnings 9,171 2,871 Beginning retained earnings 33,511 30,640 Ending retained earnings $42,682 $33,511 890 Required: Compute the following financial data and ratios for this year 1. Working capital (Enter 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
