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) This Year Last Year 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 $ 1,210 10,400 12,100 800 $ 1,230 8,500 12,500 600 24,510 22,830 9,800 9,800 42,799 35,402 52,599 45,202 $ 77,109 $ 68,032 $ 19,900 $ 18,300 1,040 150 700 150 21,090 19,150 9,300 9,300 30,390 28,450 700 700 4,000 4,000 4,700 4,700 Retained earnings 42,019 34,882 Total stockholders' equity 46,719 39,582 Total liabilities and stockholders' equity $ 77,109 $ 68,032 Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 68,000 $ 65,000 Cost of goods sold 36,000 41,000 Gross margin 32,000 24,000 Selling and administrative expenses: Selling expenses 10,900 10,200 Administrative expenses 7,400 6,500 Total selling and administrative expenses 18,300 16,700 Net operating income 13,700 7,300 Interest expense 930 930 Net income before taxes 12,770 6,370 Income taxes 5,108 2,548 Net income 7,662 3,822 Dividends to common stockholders 525 280 Beginning retained earnings Net income added to 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.) 7,137 34,882 3,542 31,340 $ 42,019 $ 34,882 Answer is complete but not entirely correct. 1. Working capital 2. Current ratio 3. Acid-test ratio $ 4,830 x 2.41 1.31