Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal 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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $1.25 last year and $0.90 this year. The market value of the company's common stock at the end of the year was $30. All of the company's sales are on account.

Compute the following financial data and ratios for this year:

1.Working capital.

2.Current ratio.(Round your answer to 2 decimal places.)

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

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,110 $ 1,400 Accounts receivable, net 10,200 8,100 Inventory 12,500 11,400 Prepaid expenses 700 500 Total current assets 24,510 21,400 Property and equipment: Land 10,000 10,000 Buildings and equipment, net 43,888 38,754 Total property and equipment 53,888 48,754 Total assets $78,398 $70, 154 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $20,000 $ 18,400 Accrued liabilities 1,010 840 Notes payable, short term 230 230 Total current liabilities 21,240 19,470 Long-term liabilities: Bonds payable 9,100 9,100 Total liabilities 30,340 28,570 Stockholders' equity: Common stock 600 600 Additional paid-in capital 4,000 4,000 Total paid-in capital 4,600 4,600 Retained earnings 43,458 36,984 Total stockholders' equity 48,058 41,584 Total liabilities and stockholders' equity $78,398 $70, 154Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $72,000 $65,000 Cost of goods sold 42,000 35,000 Gross margin 30,000 30,000 Selling and administrative expenses: Selling expenses 11,000 10,400 Administrative expenses 6,400 6,700 Total selling and administrative expenses 17,400 17,100 Net operating income 12,600 12,900 Interest expense 910 910 Net income before taxes 11,690 11,990 Income taxes 4,676 4,796 Net income 7,014 7,194 Dividends to common stockholders 540 750 Net income added to retained earnings 6,474 6,444 Beginning retained earnings 36,984 30,540 Ending retained earnings $43,458 $36,984