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 the year was $22. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,250		$	1,360
Accounts receivable, net		9,800			7,500
Inventory		13,800			11,000
Prepaid expenses		740			640
Total current assets		25,590			20,500
Property and equipment:
Land		9,600			9,600
Buildings and equipment, net		45,736			38,863
Total property and equipment		55,336			48,463
Total assets	$	80,926		$	68,963
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	18,700		$	17,900
Accrued liabilities		910			730
Notes payable, short term		150			150
Total current liabilities		19,760			18,780
Long-term liabilities:
Bonds payable		9,200			9,200
Total liabilities		28,960			27,980
Stockholders' equity:
Common stock		700			700
Additional paid-in capital		4,000			4,000
Total paid-in capital		4,700			4,700
Retained earnings		47,266			36,283
Total stockholders' equity		51,966			40,983
Total liabilities and stockholders' equity	$	80,926		$	68,963

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	73,000		$	65,000
Cost of goods sold		35,000			37,000
Gross margin		38,000			28,000
Selling and administrative expenses:
Selling expenses		11,000			10,700
Administrative expenses		6,900			6,100
Total selling and administrative expenses		17,900			16,800
Net operating income		20,100			11,200
Interest expense		920			920
Net income before taxes		19,180			10,280
Income taxes		7,672			4,112
Net income		11,508			6,168
Dividends to common stockholders		525			525
Net income added to retained earnings		10,983			5,643
Beginning retained earnings		36,283			30,640
Ending retained earnings	$	47,266		$	36,283

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.)

A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,578,400 3,511,500 2,066,900 Mckenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,340,000 Cost of goods sold 4,700,000 Gross margin 2,640,000 Selling and administrative expenses: Selling expenses 1,375,000 Administrative expenses 708,000 Total expenses 2,083,000 Net operating income 557,000 Interest expense 106,000 Net income before taxes $ 451,000 1,074,000 611,000 1,685,000 381,900 93,000 $ 288,900 Members of the company's board of directors are surprised to see that net income increased by only $162,100 when sales increased by $1,761,600. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) This Year Last Year % % % % % % Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes % % % % % % % % % %