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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
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 $23. All of the company's sales are on account Welter Corporation Comparative Balance Sheet (dollars in thousands) Assets This Year Last Year Current assets: Cash $ 1,260 Accounts receivable, net $ 1,270 9, 100 6,600 Inventory 13,500 12,300 Prepaid expenses 670 560 Total current assets 24,530 20,730 Property and equipment: Land 9,200 9,200 Buildings and equipment, net 40,638 38,204 Total property and equipment 49,838 47,404 Total assets $ 74,368 $ 68,134 Liabilities and Stockholders Equity Current liabilities: Accounts payable $ 19,600 $ 18, 200 Accrued liabilities 1,030 900 200 200 Notes payable, short term Total current liabilities 20,830 19,300 Long-term liabilities: Bonds payable 8,100 8,100 Total liabilities 28,930 27,400 Stockholders' equity: 600 600 Common stock 4,000 4,000 Additional paid-in capital 4,600 Total paid-in capital 40,838 36, 134 Retained earnings 45,438 40, 734 Total stockholders' equity $ 74,368 $ 68,134 Total liabilities and stockholders' equity 4,600 Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 4,600 40, 838 45,438 $ 74,368 4,600 36,134 40, 734 $ 68,134 Last Year $ 66,000 39,000 27,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 67,000 Cost of goods sold 40,000 Gross margin 27,000 Selling and administrative expenses: Selling expenses 10,900 Administrative expenses 6,700 Total selling and administrative expenses 17,600 Net operating income 9,400 Interest expense 810 Net income before taxes 8,590 Income taxes 3,436 Net income 5,154 Dividends to common stockholders 450 Net income added to retained earnings 4,704 Beginning retained earnings 36,134 Ending retained earnings $ 40,838 10,700 6,100 16,800 10,200 810 9,390 3,756 5,634 240 5,394 30,740 $ 36, 134 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
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