Exercise 14-3 (Algo) Financial Ratios for Asset Management [LO14-3] 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 $24. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 Current liabilities: Accounts payable Notes payable, short term Liabilities and Stockholders' Equity Accrued liabilities Total current liabilities Long-term liabilities: Bonds payable This Year Last Year $1,180 $ 1,320 9,800 12,800 7,800 12,100 700 5201 24,480 21,740 10,600 10,600 48,720 35,434 59,320 46,034 $ 83,800 $ 67,774 $ 18,600 990 $ 18,700 810 250 250 19,840 19,760 9,100 9,100 Total liabilities 28,940 28,860 Stockholders' equity: Common stock 500 500 Additional paid-in capital 4,000 4,000 Total paid-in capital 4,500 4,500