Exercise 14-2 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 $0.40 this year. The market value of the company's common stock at the end of the year was $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) Year Last Year $ 1,150 10.100 13,600 760 25.610 $1,220 7.600 10.800 1620 20.240 9.200 42,156 1151,356 56.012 $81,622 $71,596 Assets Current assets: 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 hoerued 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 520.400 $18.500 870 280 19,650 280 21,630 3900 30.530 8.900 20.550 600 4.000 4.600 600 4.000 4.600 30,530 28,550 Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 600 4,000 4,600 46, 492 51,092 $81,622 600 4,000 4,600 38,446 43,046 $71,596 Sales Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $67, 000 $ 65,000 Cost of goods sold 34,000 34,000 Gross margin 33,000 31,000 Selling and administrative expenses: Selling expenses 10,900 10,600 Administrative expenses 6800 6 500 Total selling and administrative expenses 17,700 17,100 Net operating income 15,300 13,900 890 890 Interest expense 14.410 13,010 Net income before taxes 5,764 5, 204 Income taxes 8,646 7,806 Net income 600 600 Dividends to common stockholders 8,046 7,206 Net income added to retained earnings 31,240 Beginning retained earnings $ 46,492 $38, 446 Ending retained earnings 38 446 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.)