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 $1.00 last year and $0.65 this year. The market value of the company's common stock at the end of the year was $22. 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 $ 1,140 9,400 13,800 720 $ 1,230 8,500 12,100 690 Total current assets 25,060 22,520 Property and equipment Buildings and equipment, net 9,900 40,466 9.900 37.938 Total property and equipment 50,366 $75,426 47,838 $70,358 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $19,800 1,000 $19,400 760 200 200 21.000 20.360 Total current liabilities Long-term liabilities: Bonds payable 8,700 8,700 29,700 29,060 Total liabilities Stockholders' equity Common stock Additional paid-in capital 600 4,000 600 4,000 Total paid-in capital Retained earnings 4.600 41.126 4,600 36.698 Total stockholders oquity 45,726 41,298 $70,368 Total liabilities and stockholders' equity $75,426 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $69,000 $65,000 Cost of goods sold 42,000 37,000 Gross margin 27,000 28,000 Selling and administrative expenses: Selling expenses 11,000 10,400 Administrative expenses 7,100 6,800 Total selling and administrative expenses 18,100 17,200 Net operating income Interest expense 8,900 870 10,800 870 Net income before taxes Income taxes 8,030 3,212 9,930 3,972 Net income Dividends to common stockholders 4,818 390 5,958 600 Net income added to retained earnings Beginning retained earnings 4,428 36,698 5,358 31,340 Ending retained earnings $41,126 $36,698 Required: Compute the following financial data and ratios for this year: 1. Working capital. (Enter your answer in thousands) Working capital W12 Homework: Chapter 13-1 Required: Compute the following financial data and ratios for this year: 1. Working capital. (Enter your answer in thousands) Working capital 2. Current ratio. (Round your answer to 2 decimal places.) Current ratio 3. Acid-test ratio. (Round your answer to 2 decimal places.) Acid-test ratio Hints References eBook & Resources Hint Check my work
