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 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 $24. All of the company's sales are on account. Welter Corporation Comparative Balance Sheet (dollar in thousands This Year Tant Year $1,150 10,900 12,700 680 25.430 $ 1,180 3,200 11.700 SBO 21,860 9,300 50,446 59,7462 585, 176 9.500 40,468 49.268 $31,628 Assets Current assetst Cash Accounts receivable, not Inventory Prepaid expenses Total current assets Property and equipment Land Duildings and equipment, net Total property and equipment Total Asset Liabilities and Stockholders' Equity Current liabilities: Accounts payable Noorued abilities Noteo payable, short term Total current liabilition Long-term liabilities: Bonde payable Total abilities stockholders' equity! Common stock Additional paid-in capital Total paid in capital Retained earnings Total stockholders eruity Total abilities and holders equity $20,300 1,070 240 21.610 $10,100 250 240 19.090 9,700 31.10 9,700 2,790 500 4.000 4,600 49.266 92.06 005, 176 500 5.000 4,600 0.230 $72,620 Proy 1 of 3 !!! Next > Total liabilities and stockholders' equity $85,176 $71,628 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $74,000 $64,000 Cost of goods sold 36,000 34,000 Gross margin 38,000 30,000 Selling and administrative expenses Selling expenses 10,800 10,000 Administrative expenses 7,100 6.800 Total selling and administrative expenses 17,900 16,800 Net operating income 20,100 13,200 Interest expense 970 970 Not income before taxen 19, 130 12,230 Income taxes 7.652 4,892 Net income 11,478 7.338 Dividends to common stockholders 450 240 Net income added to retained earninga 11,028 7,098 Beginning retained earnings 38, 238 31,140 Ending retained earnings $49,266 $38, 238 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 Prov 1 of 3 Next >
