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 $500,000$ 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 $$0\mathrm{.}75$ last year and $$0\mathrm{.}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 $ $1,190$ $ $1,330$

Accounts receivable, net $10,3007,900$

Inventory $13,10011,900$

Prepaid expenses $690520$

Total current assets $25,28021,650$

Property and equipment:

Land $9,4009,400$

Buildings and equipment, net $41,44735,806$

Total property and equipment $50,84745,206$

Total assets $ $76,127$ $ $66,856$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $19,900$ $ $17,600$

Accrued liabilities $1,040810$

Notes payable, short term $190190$

Total current liabilities $21,13018,600$

Long$-$term liabilities:

Bonds payable $8,4008,400$

Total liabilities $29,53027,000$

Stockholders' equity:

Common stock $500500$

Additional paid$-$in capital $4,0004,000$

Total paid$-$in capital $4,5004,500$

Retained earnings $42,09735,356$

Total stockholders' equity $46,59739,856$

Total liabilities and stockholders' equity $ $76,127$ $ $66,856$

Weller Corporation

Comparative Income Statement and Reconciliation

$($dollars in thousands$)$

This Year Last Year

Sales $ $70,000$ $ $66,000$

Cost of goods sold $39,00041,000$

Gross margin $31,00025,000$

Selling and administrative expenses:

Selling expenses $11,30010,700$

Administrative expenses $7,0006,100$

Total selling and administrative expenses $18,30016,800$

Net operating income $12,7008,200$

Interest expense $840840$

Net income before taxes $11,8607,360$

Income taxes $4,7442,944$

Net income $7,1164,416$

Dividends to common stockholders $375200$

Net income added to retained earnings $6,7414,216$

Beginning retained earnings $35,35631,140$

Ending retained earnings $ $42,097$ $ $35,356$

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.$)$Comporative finsncial statements for Weler Corporstion, o merchand'sing company, for the yesr ending December $31$ speser below.

The company did not lasue sny new common stock during the yesr. A tatal of $500,000$ shores of common stock were outstanding. The

interest rate on the bond psysble was $10\%,$ the income tsx rate was $40\%,$ snd the dlvedend per share of common stock was $$0\mathrm{.}75$ lest

year snd $$0\mathrm{.}40$ th$\text{'}$s year. The market volue of the compeny's comman stock ot the end of th$\text{'}$s year wes $$21.$ All of the compony's ssles

are on sccount.

Required:

Compute the follawing financisl dats and retios for thls year:

Working cspitsl. $($Enter your snswer In thousands.$)$

$2$ Current retio. $($Round your snswer to $2$ decimal ploces.$)$

Acid test ratio. $($Round your answer to $2$ decimal places.$)$