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 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 $0.50 last year and $0.40 this year. The market value of the company's common stock at the end of the year was $25. All of the company's sales are on account. weiler corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,250 9,100 12,800 780 23,930 $ 1,250 8,300 11,800 690 22,040 9,100 46,082 55,182 $79,112 9,100 40,086 49,186 $71,226 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 $18,800 1,100 280 20,180 $17,600 880 280 18,760 8,400 28,580 8,400 27,160 700 4,000 4,700 45,832 50,532 $79,112 700 4,000 4,700 39,366 44,066 $71, 226 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $67,000 $65,000 Cost of goods sold 37,000 33,000 Gross margin 30,000 32,000 Selling and administrative expenses: Selling expenses 10,600 10,200 Administrative expenses 7,200 6,500 Total selling and administrative expenses 17,800 16,700 Net operating income 12,200 15,300 Interest expense 840 840 Net income before taxes 11,360 14,460 Income taxes 4,544 5,784 Net income 6,816 8,676 Dividends to common stockholders 350 350 Net income added to retained earnings 6,466 8,326 Beginning retained earnings 39,366 31,040 Ending retained earnings $ 45,832 $39,366 Required: Compute the following financial data and ratios for this year: 1. Working capital. 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) Required: Compute the following financial data and ratios for this year: 1. Working capital. 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
