Exercise 14-2 (Algo) Financial Ratios for Assessing Liquidity [LO14-2] 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 500,000 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 $26. All of the company's sales are on account This Year Last Year $ 1,140 9,400 12,500 750 2020 $1,220 6,500 11,300 192010 Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Totol current assets Property and equipment Land Huildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities accounts payable Accrued llabilities flotes payable, short tere Total current liabilities Long-tere liabilities: Bonds payable Total Itabilities Stockholders equity: Common stock Additional paid in capital 10.000 49,039 59,832 $63.659 10,600 40.412 51.212 $ 70,022 520,200 920 220 5 10,300 780 220 19,350 21,390 9,000 20150 500 500 4.000 Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders equity Total liabilities and stockholders' equity 500 4,000 4,500 47,969 52,469 $ 83,659 500 4,000 4,500 37,172 41,672 $ 70,822 Last Year $ 65,000 37,000 28,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 71,000 Cost of goods sold 34,000 Gross margin 37.000 Selling and administrative expenses: Selling expenses 10,800 Administrative expenses 6,600 Total selling and administrative expenses 17,400 Net operating income 19,600 Interest expense 980 Net income before taxes 18,620 Income taxes 7,448 Net income 11, 172 Dividends to common stockholders 375 Net Income added to retained earnings 10,797 Beginning retained earnings 37 172 Ending retained earnings $ 47,969 10,900 6,400 17,300 10,700 980 9,720 3,888 5,832 200 5,632 31,540 $ 37,172 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.)