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 the year was $23. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This year lant Year $ 1,230 11,000 13,800 740 26,270 $1,330 6,900 11,500 600 20,410 10,700 36,125 42,175 567.585 10,700 34.210 45,410 572,180 Assets Current assets CARS Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment Land Buildings and equipment, net Total property and equipment Total aseta 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 pald.in capital Total paid in capital Retoined earnings Total stockholders' equity $10.500 1,000 330 19,630 $19,300 840 130 201370 0.000 127,010 201270 700 700 6.000 4,700 32.550 5000 4.700 34,615 39.35 B Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 4.000 4,700 39,850 44.550 $72,180 4,000 4,700 34,615 39,315 $67,585 ences Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $66,000 $65,000 Cost of goods sold 39,000 41,000 drous margin 28,000 24,000 Belling and administrative expenses Selling expenses 10.700 10.300 Administrative expenses 6.900 6,900 Total selling and administrative expenses 17.600 17,200 Net operating income 10,400 6,000 Interest expense 800 800 Net Incone before taxes 9.600 6.000 Income taxon 3.840 2.400 Not Income 5,760 3,600 Dividends to common stockholders 525 525 Net Incone added to retained earnings 5,235 3.075 Beginning retained earnings 34,615 31,540 Ending retained earnings $39,850 $34,615 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.) This Year Tant Year $66.000 $65,000 38,000 41,000 28.000 24,000 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 Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 10,700 6,900 17,600 10,400 300 9,600 3,840 5,760 525 5,235 34,615 $39,850 10,300 6.900 17,200 6,800 BOO 6,000 2,400 3,600 525 3,075 31,540 $34,615 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
