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 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 company's common stock at the end of this year was $22. All of the company's sales are on account Woller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,200 10,100 12,500 700 24,500 $ 1,260 7,200 10,800 660 19,920 10,000 43,389 53,389 $ 77,009 10,000 41,462 31,462 $ 71, 382 Assets Current assets Canh Accounts receivable, net Inventory Prepaid expenses Total current au sets Property and equipment Land Buildings and equipment, net Total property and equipment Total assets Liabilities and stockholders' Equity Current liabilities Accounts payable Accrued liabilities Noton payable, short term Total current liabilities Long-term liabilities Bonde 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 $ 19,900 960 290 21.150 $ 19,000 720 290 20.010 8.800 29,950 0,800 28.820 700 4.000 4,700 43,239 47,939 $ 77,889 700 4.000 4,700 37,872 42,572 $71, 382 Last Year $ 65,000 35,000 30,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 71,000 Cost of goods sold 42,000 Gross margin 29,000 Selling and administrative expenses: Selling expenses 11,400 Administrative expenses 6,900 Total selling and administrative expenses 18,300 Net operating income 10,700 Interest expense 880 Net income before taxes 9,820 Income taxes 3,928 Net income 5,892 Dividends to common stockholders 525 Net income added to retained earnings 5,367 Beginning retained earnings 37,872 Ending retained earnings $ 43,239 10,600 7,000 17,600 12,400 880 11,520 4,608 6,912 280 6,632 31,240 $ 37,872 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