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 700,000 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 this year was $27. All of the companys sales are on account.

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.)

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Yeai $ 1,140 9,200 12,000 740 23,080 $ 1,260 7,600 12,400 580 21,840 9,700 41,205 50,905 $73,985 9,700 37,500 47,200 $69,040 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 $18,600 990 220 19,810 $19,300 760 220 20,280 8,000 27,810 8,000 28,280 700 4,000 4,700 41,475 46,175 $73,985 700 4,000 4,700 36,060 40,760 $69,040 Last Year $66,000 39,000 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 10,800 Administrative expenses 6,500 Total selling and administrative expenses 17,300 Net operating income 10,700 Interest expense 800 Net income before taxes 9,900 Income taxes 3,960 Net income 5,940 Dividends to common stockholders 525 Net income added to retained earnings 5,415 Beginning retained earnings 36,060 Ending retained earnings $41,475 10,200 6,500 16,700 10,300 800 9,500 3,800 5,700 280 5,420 30,640 $36,060 1. Working capital 2. Current ratio 3. Acid-test ratio