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 $24. All of the company's sales are on account This Year Last Year 1,240 9,700 13,800 790 25,530 $ 1,250 7,100 11,700 610 20,660 Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital 9,700 38,898 48,598 $74, 128 9,700 39,164 48,864 $69,524 $19,200 1,050 290 20,540 $18,500 800 290 19,590 8,600 29, 140 8,600 28, 190 600 4.000 600 4.000 Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,240 9,700 13,800 790 25,530 $ 1,250 7,100 11,700 610 20,660 9,700 38,898 48,598 $74, 128 9,700 39,164 48,864 $69,524 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $19, 200 1,050 290 20,540 $18,500 800 290 19,590 8,600 29, 140 8,600 28, 190 600 4,000 4,600 40,388 44,988 $74, 128 600 4,000 4,600 36, 734 41,334 $69,524 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $67,000 $64,000 Cost of goods sold 41,000 36,000 Gross margin 26,000 28,000 Selling and administrative expenses: Selling expenses 11,100 10,200 Administrative expenses 7,200 6,200 Total selling and administrative expenses 18,300 16,400 Net operating income 7,700 11,600 Interest expense 860 860 Net income before taxes 6,840 10,740 Income taxes 2,736 4,296 Net income 4,104 6,444 Dividends to common stockholders 450 450 Net income added to retained earnings 3,654 5,994 Beginning retained earnings 36,734 30,740 Ending retained earnings $40,388 $36, 734 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.)
