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 company's common stock at the end of this year was $23. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets This Year Last Year Current assets! Cash Accounts receivable, net $ 1,250 $ 1,340 Inventory 10,900 8,100 12,500 Prepaid expenses 10,700 720 630 Total current assets 25.370 20,770 Property and equipment: Land 9,800 9,800 Buildings and equipment, net 44,911 37, 158 Total property and equipment 54,711 46,958 Total assets $ 80,081 $ 67,728 Liabilities and Stockholders' Equity Current liabilities: $ 20,300 $ 17,500 Accounts payable 1.990 780 Accrued liabilities 180 180 Notes payable, short term 21,570 18,460 Total current liabilities Long-term liabilities: 8,200 Bonds payable 29,270 26, 660 Total liabilities Stockholders' equity: 700 700 Common stock 4,000 Additional paid in capital 4,700 36,368 Total paid-in capital 41,068 Retained earnings lders equity 8,200 4,000 4,780 45.611 50, 311 4,000 4,700 36,368 41,068 $ 67,728 Total paid-in capital 4,000 Retained earnings 4,700 Total stockholders' equity 45,611 Total liabilities and stockholders' equity 50,311 $ 80,081 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 73,000 Cost of goods sold 38,000 Gross margin 35,000 Selling and administrative expenses: Selling expenses 11, 100 Administrative expenses 6,800 Total selling and administrative expenses 17,900 Net operating income 17, 100 Interest expense 828 Net income before taxes 16,280 Income taxes 6,512 9,768 Net income 525 Dividends to common stockholders Net Income added to retained earnings 9,243 36,368 Beginning retained earnings $ 45,611 Ending retained earnings Last Year $ 65,000 38,000 27,000 10,900 6,100 17,000 10,000 820 9, 180 3,672 5,508 280 5,228 31,140 $ 36,368 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
