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 $27. 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 $ 1.120 10 800 13.900 720 $ 1,360 7300 11.400 510 26,540 20,570 Total current assets Property and equipment: Land Buildings and equipment, net 10,000 45.670 10,000 42.790 Total property and equipment 55,670 $82,210 52,790 $ 73,360 Total assets Liabilities and Stockholders' Equity Current Sabilities Accounts payable Accrued liabilities Notes payable, short term $19,900 940 200 $ 18,700 760 200 21,04019660 Total current liabilities Long-term liabilities Bonds payable 10,000 10,000 Total liabilities 31,040 29,660 Stockholders' equity Common stock Additional paid-in capital 600 4.000 600 4.000 Total paid-in capital Retained earnings 4600 46.570 4600 39,100 Total stockholders' equity 51.170 43.700 Total liabilities and stockholders' equity $82 210 $73,360 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $74.000 $66.000 Cost of goods sold 42.000 34.000 Gross margin 32.000 32,000 Selling and administrative expenses Selling expenses 10,700 10.300 Administrative expenses 7.2006 .100 Total selling and administrative expenses 17,900 16.400 Net operating income Interest expense 14.100 1.000 15.600 1.000 Net income before taxes Income taxes 13,100 14.600 5.2405 .840 Net Income Dividends to common stockholders 7.860 390 8.760 600 Net income added to retained earnings Beginning retained earnings 7.470 39.100 8,160 30,940 Ending retained earnings $46,570 $39.100 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
