Exercise 14-2 Financial Ratios for Assessing Liquidity (L014-21 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 50:40 this year. The market value of the company's common stock at the end of the year was $22. All of the company's sales are on account $ 1,160 10,400 12,80 778 25,130 $ 1,298 8,300 12,200 540 22,330 9,400 43,538 52,938 $78,068 9,480 37 449 46,849 $69, 179 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 Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Adaltional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $18, 100 980 $18,800 1,070 140 29,010 140 19,140 9.600 29,610 9,600 28,740 700 4.000 4,700 43,758 48,458 $78,068 700 4,000 4,700 35,289 40.439 $59,179 This Year Last Year $72,000 $65,000 39,000 38,000 33,800 27,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 18,500 7,300 17,800 15, 200 960 14, 240 5,696 8,544 525 8,019 35739 $43,758 10,780 6,800 17,500 9,500 960 8,540 3,416 5,124 525 4,599 31140 $35,739 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.)