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 $30. All of the company's sales are on account. Accounts payadle Accrued liabilities Notes payable, short term Total current liabilities \begin{tabular}{rr} $18,900 & $11,900 \\ 980 & 800 \\ 220 & 220 \\ \hline 20,100 & 18,920 \end{tabular} Long-term liabilities: Bonds payable Total liabilities \begin{tabular}{rr} 8,800 & 8,800 \\ \hline 28,900 & 27,720 \\ \hline \end{tabular} Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital \begin{tabular}{rr} 600 & 600 \\ 4,000 & 4,000 \\ \hline 4,600 & 4,600 \end{tabular} Retained earnings Total stockholders' equity Total liabilities and stockholders' equity \begin{tabular}{rr} 42,794 & 33,272 \\ \hline 47,394 & 37,872 \\ \hline$76,294 & $65,592 \end{tabular} Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin \begin{tabular}{rr} This Year & Last Year \\ $75,000 & $64,000 \\ 40,000 & 42,000 \\ \hline 35,000 & 22,000 \end{tabular} 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.) 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 $30. All of the company's sales are on account. Accounts payadle Accrued liabilities Notes payable, short term Total current liabilities \begin{tabular}{rr} $18,900 & $11,900 \\ 980 & 800 \\ 220 & 220 \\ \hline 20,100 & 18,920 \end{tabular} Long-term liabilities: Bonds payable Total liabilities \begin{tabular}{rr} 8,800 & 8,800 \\ \hline 28,900 & 27,720 \\ \hline \end{tabular} Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital \begin{tabular}{rr} 600 & 600 \\ 4,000 & 4,000 \\ \hline 4,600 & 4,600 \end{tabular} Retained earnings Total stockholders' equity Total liabilities and stockholders' equity \begin{tabular}{rr} 42,794 & 33,272 \\ \hline 47,394 & 37,872 \\ \hline$76,294 & $65,592 \end{tabular} Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin \begin{tabular}{rr} This Year & Last Year \\ $75,000 & $64,000 \\ 40,000 & 42,000 \\ \hline 35,000 & 22,000 \end{tabular} 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.)
