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Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new

Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal 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 bonds, which were sold at their face value, 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 $ 1,100 $ 1,380
Accounts receivable, net 9,300 7,100
Inventory 12,700 10,800
Prepaid expenses 780 690
Total current assets 23,880 19,970
Property and equipment:
Land 9,400 9,400
Buildings and equipment, net 44,496 39,138
Total property and equipment 53,896 48,538
Total assets $ 77,776 $ 68,508
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 18,800 $ 18,000
Accrued liabilities 1,090 830
Notes payable, short term 300 300
Total current liabilities 20,190 19,130
Long-term liabilities:
Bonds payable 8,200 8,200
Total liabilities 28,390 27,330
Stockholders' equity:
Common stock 600 600
Additional paid-in capital 4,000 4,000
Total paid-in capital 4,600 4,600
Retained earnings 44,786 36,578
Total stockholders' equity 49,386 41,178
Total liabilities and stockholders' equity $ 77,776 $ 68,508

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
This Year Last Year
Sales $ 70,000 $ 64,000
Cost of goods sold 38,000 36,000
Gross margin 32,000 28,000
Selling and administrative expenses:
Selling expenses 10,500 11,000
Administrative expenses 6,600 6,200
Total selling and administrative expenses 17,100 17,200
Net operating income 14,900 10,800
Interest expense 820 820
Net income before taxes 14,080 9,980
Income taxes 5,632 3,992
Net income 8,448 5,988
Dividends to common stockholders 240 450
Net income added to retained earnings 8,208 5,538
Beginning retained earnings 36,578 31,040
Ending retained earnings $ 44,786 $ 36,578

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.)

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