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 500,000 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 $24. All of the companys sales are on account. 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.)

\begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Comparative Balance Sheet \\ (dollars in thousands) \end{tabular}} \\ \hline & This Year & Last Year \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline \multicolumn{3}{|l|}{ Current assets: } \\ \hline Cash & $1,200 & $1,290 \\ \hline Accounts receivable, net & 10,70 & 8,400 \\ \hline Inventory & 13,900 & 10,900 \\ \hline Prepaid expenses & 680 & 520 \\ \hline Total current assets & 26,480 & 21,11 \\ \hline \multicolumn{3}{|l|}{ Property and equipment: } \\ \hline Land & 1, & 10,0 \\ \hline Buildings and equipment, net & 40,229 & 38,382 \\ \hline Total property and equipment & 50,229 & 48,382 \\ \hline Total assets & $76,709 & $69,492 \\ \hline \multicolumn{3}{|l|}{ Liabilities and Stockholders' Equity } \\ \hline \multicolumn{3}{|l|}{ Current liabilities: } \\ \hline Accounts payable & $18,600 & $18,300 \\ \hline Accrued liabilities & 1, & 890 \\ \hline Notes payable, short term & 12 & 120 \\ \hline Total current liabilities & 19,72 & 19,310 \\ \hline \multicolumn{3}{|l|}{ Long-term liabilities: } \\ \hline Bonds payable & 9,300 & 9,300 \\ \hline Total liabilities & 29,62 & 28,610 \\ \hline \multicolumn{3}{|l|}{ Stockholders' equity: } \\ \hline Common stock & 500 & 500 \\ \hline Additional paid-in capital & 4,000 & 4,000 \\ \hline Total paid-in capital & 4,500 & 4,500 \\ \hline Retained earnings & 43,189 & 36,382 \\ \hline Total stockholders' equity & 47,689 & 40,882 \\ \hline Total liabilities and stockholders' equity & $76,709 & $69,492 \\ \hline \multicolumn{3}{|c|}{\begin{tabular}{l} Weller Corporation \\ Income Statement and Reconciliation \\ (dollars in thousands) \end{tabular}} \\ \hline & This Year & Last Year \\ \hline Sales & $7,00 & $65,000 \\ \hline Cost of goods sold & 39, & 38, \\ \hline Gross margin & 31,0 & 27,00 \\ \hline Selling and administrative expenses: & & \\ \hline Selling expenses & 11,100 & 10,10 \\ \hline Administrative expenses & 7, & 6,900 \\ \hline Total selling and administrative expenses & 18,100 & 17,00 \\ \hline Net operating income & 12,900 & 1, \\ \hline Interest expense & 930 & 930 \\ \hline Net income before taxes & 11,970 & 9,07 \\ \hline Income taxes & 4,788 & 3,628 \\ \hline Net income & 7,182 & 5,442 \\ \hline Dividends to common stockholders & 375 & 200 \\ \hline Net income added to retained earnings & 6,807 & 5,242 \\ \hline Beginning retained earnings & 36,382 & 31,14 \\ \hline Ending retained earnings & $43,189 & $36,382 \\ \hline \end{tabular}