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 this year was $22. All of the company's sales are on account. 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 Weller Corporation Comparative Balance Sheet (dollars in thousands) Liabilities and Stockholders' Equity This Year Last Year $ 1,230 9,600 12,900 $ 1,370 6,800 11,700 620 530 24,350 20,400 10,000 10,000 44,085 39,750 54,085 49,750 $ 78,435 $ 70,150 Current liabilities: Accounts payable $ 19,400 $ 18,000 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 910 880 230 230 20,540 19,110 8,000 8,000 28,540 27,110 700 700 4,000 4,000 4,700 45,195 49,895 4,700 38,340 43,040 Total liabilities and stockholders' equity $ 78,435 $ 70,150 Sales Cost of goods sold Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year $ 72,000 Last Year $ 65,000 41,000 34,000 Gross margin 31,000 31,000 Selling and administrative expenses: Selling expenses 11,200 10,800 Administrative expenses 6,700 6,100 Total selling and administrative expenses 17,900 16,900 Net operating income 13,100 14,100 Interest expense 800 800 Net income before taxes 12,300 13,300 Income taxes 4,920 5,320 Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 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 7,380 7,980 525 280 6,855 38,340 7,700 30,640 $ 45,195 $ 38,340