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 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 the year was $29. All of the company's sales are on account Weller Corporation Comparative Balance sheet (dollar in thaunandia) This Year Tant Year $ 1,170 10,900 13,500 740 26.310 $ 1,370 7,800 12,400 690 22,260 10,100 42,196 52.296 $78,606 10,100 36,618 46,718 $68,978 Assets Corrent assets. Canh 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 Tong-term lsabilities: Bonds payable Total liabilities Stockholdere equity! Common stock Additional paid-in capital Total paid-in capital Metained earnings Total stockholders' equity Total liabilities and stockholders' equity $19,200 970 260 20, 430 $18,200 750 260 19,210 8,200 28,630 8,200 22.410 700 4,000 4,700 45,276 49.976 $78.606 700 4.000 4,700 36,868 41,568 S6B,978 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Yenr Sales $75,000 $65,000 Cont of goods sold 41,000 36,000 Gross margin 34,000 29,000 Selling and administrative expenses Selling expenses 10,900 10,900 Administrative expenses 7,100 6,400 Total selling and administrative expenses 18,000 17.300 Net operating income 16,000 11,700 Interest expense 820 820 Net income before taxes 15,180 10,880 Income taxes 6,072 4,352 Net income 9, 108 6,528 Dividends to common stockholders 700 700 Net income added to retained earnings 8, 408 5,828 Beginning retained earnings 36,868 31,040 Ending retained earnings $45,276 $36,868 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