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 $30 All of the company's sales are on account Welier Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,140 10,200 13,900 $ 1,270 7,800 11,500 670 21,240 680 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 25.920 2,400 40,736 50,136 $76,056 9,400 39,258 48,658 569,898 13,900 680 25,920 11,500 678 21,240 9,400 40,736 50,136 $76,056 9,400 39,258 48,658 $69,898 vus VOUAC 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 1,060 180 19,840 $18,800 900 180 19,880 9,200 29,040 9,200 29,080 600 600 4,000 4,600 42,416 47,016 $76,056 4,000 4,600 36,218 40,818 $69,898 Last Year $65,000 38,000 27,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $67,000 Cost of goods sold 37,000 Gross margin 30,000 Selling and administrative expenses: Selling expenses 11,100 Administrative expenses 6,900 Total selling and administrative expenses 18,000 Net operating income 12, Interest expense 920 Net income before taxes 11,080 Income taxes 4,432 Net income 6,648 Dividends to common stockholders 450 Net income added to retained earnings 6,198 Beginning retained earnings 36,218 Ending retained earnings $42,416 11,000 6,200 17,200 9,800 920 8,880 3,552 5,328 450 4,878 31,340 $36,218 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
