Exercise 13-3 Financial Ratios for Asset Management [LO13-3] 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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the year was $22. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses $ 1,100 $1,240 8,400 14,000 12,300 650 9,400 760 Total current assets 25,260 22,590 Property and equipment: Land 9,500 9,500 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity 43,647 35,260 53,147 44,760 $78,407 $67,350 Current liabilities Accounts payable Accrued liabilities $19,600 $19,000 740 250 1,010 250 Notes payable, short term Total current liabilities Long-term liabilities 20,860 19,990 9,000 9,000 29,860 28,990 Bonds payable Total liabilities Stockholders' equity: 500 4,000 500 Common stock Additional paid-in capital 4,000 Total paid-in capital Retained earnings 4,500 4,500 44,047 33,860 48,547 38,360 $78,407 $67,350 Total stockholders' equity Total liabilities and stockholders' equity