Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...

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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 $20. All of the company's sales are on account. 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 Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,100 9,600 12,200 $ 1,230 7,900 11,600 710 23,610 630 21,360 9,600 9,600 44,642 54,242 36,466 46,066 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 $ 77,852 $ 20,000 920 290 21,210 9,900 31,110 $ 67,426 $ 17,900 730 290 18,920 9,900 28,820 600 600 4,000 4,000 4,600 4,600 42,142 46,742 38,606 $ 77,852 $ 67,426 34,006 Weller Corporation < Prev 3 of 6 Next > Total liabilities and stockholders' equity Sales Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) 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 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 $ 77,852 $ 67,426 This Year Last Year $ 72,000 $ 65,000 39,000 42,000 33,000 23,000 11,200 10,500 6,500 6,000 17,700 16,500 15,300 6,500 990 990 14,310 5,510 5,724 2,204 8,586 3,306 450 240 8,136 34,006 3,066 30,940 $ 42,142 $ 34,006 < Prev 3 of 6 Next > 4. 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 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 $20. All of the company's sales are on account. 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 Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,100 9,600 12,200 $ 1,230 7,900 11,600 710 23,610 630 21,360 9,600 9,600 44,642 54,242 36,466 46,066 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 $ 77,852 $ 20,000 920 290 21,210 9,900 31,110 $ 67,426 $ 17,900 730 290 18,920 9,900 28,820 600 600 4,000 4,000 4,600 4,600 42,142 46,742 38,606 $ 77,852 $ 67,426 34,006 Weller Corporation < Prev 3 of 6 Next > Total liabilities and stockholders' equity Sales Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) 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 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 $ 77,852 $ 67,426 This Year Last Year $ 72,000 $ 65,000 39,000 42,000 33,000 23,000 11,200 10,500 6,500 6,000 17,700 16,500 15,300 6,500 990 990 14,310 5,510 5,724 2,204 8,586 3,306 450 240 8,136 34,006 3,066 30,940 $ 42,142 $ 34,006 < Prev 3 of 6 Next > 4. 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