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 company's common stock at the end of this year was $25. All of the company's sales are on account Weller Corporation Comparative Balance sheet (dollars in thousanda) This Year Last Year $1,150 10,500 13,500 5 1,260 7.400 11,700 550 21.010 640 25.790 3.300 42. 50, $ 76,178 9.300 38.494 47.794 563.204 Assets Current stat Cash Accounts receivable, net Tnventory Deepaid expenses Total current assets Property and equipment Land oldings and equipment, not Total property and equipment Total asset Liabilities and Stockholders Iquity current 13 abilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities Bonde payable Total liabilities Stockholders' equity Common stock Additional paid in capital Total paid-in capital Retained earning Total stockholders' equity Total liabilities and stockholders equity $ 19,900 200 21,240 $10.200 780 280 19.260 3.600 29.040 3.600 27,060 600 4,000 4.600 61,20 46330 $76,178 4.000 4.600 2624 5.60,004 Last Year $ 65,000 38,000 27,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 71,000 Cost of goods sold 43,000 Gross margin 28,000 Selling and administrative expenses: Selling expenses 10,600 Administrative expenses 6,800 Total selling and administrative expenses 17,400 Net operating income 10,600 Interest expense 860 Net income before taxes 9,740 Income taxes 3,896 Net income 5, 844 Dividends to common stockholders 450 Net income added to retained earnings 5,394 Beginning retained earnings 36,344 Ending retained earnings $ 41,738 10,600 6,800 17,400 9,600 860 8,740 3,496 5,244 240 5,004 31,340 $ 36,344 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.) 1. Working capital 2. Current ratio 3. Acid-test ratio 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 company's common stock at the end of this year was $25. All of the company's sales are on account eller Corporation Comparative Balance sheet (dollars in thousands This Year Last Year $ 1,150 10,500 13,500 600 25,790 $ 1,360 7.400 11.700 550 21.010 9.300 4,08 50,388 $ 76,170 9.300 38.494 47.794 560.000 Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current acts Property and equipment Land buildings and equipment, net Total property and equipment Total aosta Liabilities and stockholders' Equity Current liabilities rocounts payable Accrued liabilities Notes payable, whort term Total current liabilities Long-term liabilities: Donds payable Total liabilities Stockholders equity Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholdera equity Total liabilities and stockholders' equity $ 19,900 1,060 280 21,240 $ 18,200 780 280 19,260 8,600 29,840 0.600 27.860 600 4.000 4,600 41,738 46,338 $ 76,178 600 4,000 4.600 36,344 80,944 $68,804 Last Year $ 65,000 38,000 27,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 71,000 Cost of goods sold 43,000 Gross margin 28,000 Selling and administrative expenses: Selling expenses 10,600 Administrative expenses 6,800 Total selling and administrative expenses 17,400 Net operating income 10,600 Interest expense 860 Net income before taxes 9,740 Income taxes 3,896 Net income 5,844 Dividends to common stockholders 450 Net income added to retained earnings 5,394 Beginning retained earnings 36, 344 Ending retained earnings $ 41,738 10,600 6,800 17,400 9,600 860 8,740 3,496 5,244 240 5,004 31,340 $ 36,344 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.) 1. Working capital 2. Current ratio 3. Acid-test ratio
