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 companys common stock at the end of this year was $27. All of the companys sales are on account.

equired:

Compute the following financial data and ratios for this year:

1. Working capital. (Enter answer in thousands.)

2. Current ratio. (Round your answer to 2 decimal places.)

3. Acid-test ratio. (Round your answer to 2 decimal places.)

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 1,100 1,210 7,400 10,600 540 23,060 19,750 9,100 12,20010 660 Total current assets property and equipment : Land 10,000 44,36840,534 10,000 Buildings and equipment, net Total property and equipment Total assets Liabilities and stockholders' Equity Current liabilities: 54,368 50,534 $77,428 $70,284 Accounts payable $20,200 $18,400 Accrued liabilities Notes payable, short term Total current 1liabilities Long-term liabilities: 860 210 21,38019,470 970 210 Bonds payable Total liabilities Stockholders' equity: 9,600 30,980 9,600 29,070 500 4,000 500 36,714 46 448 41:214 $77,428 $70,284 500 4,000 4,500 41,948 Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 36,714 41,214 $77,428 $70,284 41,948 46,448 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: $71,000 $65, 000 43,00036,000 29,000 10,600 7,300 17,900 10,100 960 9,140 3, 656 5,484 250 5, 234 36, 714 10,800 6,700 17,500 11,500 960 10,540 4,216 6,324 250 6,074 30,640 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 $41,948 $36,714 Ending retained earnings Required: Compute the following financial data and ratios for this year: tel tcotor answer in thousands.) Required: Compute the following financial data and ratios for this year Hint Print 1. Working capital. (Enter answer in thousands.) References 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 ratico Prev3 of Mc Graw Hill