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Exercise 14-2 (Algo) Financial Ratios for Assessing Liquidity (L014-2) Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear

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Exercise 14-2 (Algo) Financial Ratios for Assessing Liquidity (L014-2) 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 $040 this year. The market value of the company's common stock at the end of this year was $23. All of the company's sales are on account are on account. Weller Corporation mparative Balance Sheet (dollars in thousan This Year Last Year $ 1,250 9,700 12,800 660 24,410 $ 1,380 6,700 12,300 680 21,060 9,500 42,420 51,920 $ 76,330 9,500 39,230 48,730 $ 69,790 Assets Current assetst Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment 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 $ 20,100 1,000 180 21,280 $ 18,300 790 180 19,270 9,000 30,280 9,000 28,270 600 4,000 4,600 41,450 46,050 $ 76,330 600 4,000 4,600 36,920 41,520 $ 69,799 Last Year $ 65,000 37,000 28,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 68,000 Cost of goods sold 41,000 Gross margin 27,000 Selling and administrative expenses: Selling expenses 11,200 Administrative expenses 6,600 Total selling and administrative expenses 17,800 Net operating income 9,200 Interest expense 900 Net income before taxes 8,300 Income taxes 3,320 Net income 4,980 Dividends to common stockholders 450 Net income added to retained earnings 4,530 Beginning retained earnings 36,920 Ending retained earnings $ 41,450 10,700 6,700 17,400 10,600 900 9,700 3,880 5,820 240 5,580 31, 340 $ 36,920 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

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