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 $21, All of the company's sales are on account. weller Corporation, Comparative Balance Sheet (dollars in thousands) Return to question This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets: $1,260 9,800 13,900 $1,310 6,900 12,000 600 580 25,640 20,790 Property and equipment: Land 10,000 10,000 Buildings and equipment, net 43,787 38,036 Total property and equipment 53,787 48,036 Total assets $79,427 $ 68,826 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $19,000 Accrued liabilities Notes payable, short term Total current liabilities 1910 190 20,900. 19,770 $18,800 780 190 Long-term liabilities: 12 9 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 $ 19,800 910 $ 18,800 780 190 20,900 190 19,770 8,400 8,400 29,300 28,170 700 700 4,000 4,000 4,700 4,700 45,427 50,127 $ 79,427 35,956 40,656 $ 68,826 Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes This Year Last Year $ 75,000 40,000 35,000 11,000 6,500 17,500 17,500 840 16,660 $ 64,000 38,000 26,000 10,400 6,100 16,500 9,500 840 8,660 Interest expense Net income before taxes: Income taxes 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.) Answer is complete but not entirely correct. 1. Working capital 4,270 2. Current ratio 1.21 3. Acid-test ratio 0.55 840 840 16,660 8,660 6,664 3,464 9,996 5,1961 525 280 9,471 35,956 $ 45,427 $ 35,956 4,916) 31,040