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 600,000 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 companys common stock at the end of the year was $22. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,150		$	1,360
Accounts receivable, net		9,500			8,100
Inventory		12,700			11,500
Prepaid expenses		640			620
Total current assets		23,990			21,580
Property and equipment:
Land		10,100			10,100
Buildings and equipment, net		45,396			39,188
Total property and equipment		55,496			49,288
Total assets	$	79,486		$	70,868
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,300		$	18,400
Accrued liabilities		1,030			830
Notes payable, short term		260			260
Total current liabilities		20,590			19,490
Long-term liabilities:
Bonds payable		8,700			8,700
Total liabilities		29,290			28,190
Stockholders' equity:
Common stock		600			600
Additional paid-in capital		4,000			4,000
Total paid-in capital		4,600			4,600
Retained earnings		45,596			38,078
Total stockholders' equity		50,196			42,678
Total liabilities and stockholders' equity	$	79,486		$	70,868

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	69,000		$	65,000
Cost of goods sold		37,000			35,000
Gross margin		32,000			30,000
Selling and administrative expenses:
Selling expenses		11,100			10,000
Administrative expenses		7,000			6,900
Total selling and administrative expenses		18,100			16,900
Net operating income		13,900			13,100
Interest expense		870			870
Net income before taxes		13,030			12,230
Income taxes		5,212			4,892
Net income		7,818			7,338
Dividends to common stockholders		300			300
Net income added to retained earnings		7,518			7,038
Beginning retained earnings		38,078			31,040
Ending retained earnings	$	45,596		$	38,078

1. What is working capital?

2. What is current ratio?

3. What is the acid-test ratio?