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 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 this year was $23. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands). This Year Last Year Assets Current assets: Cashi 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 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity $ 1,210 10,200 13,200 600 25,210 9,200 45,920 55,120 $ 80,330 $ 19,100 1,020 240 20,360 $ 1,380 8,200 12,200 620 22,400 9,200 36,878 46,078 $ 68,478 $ 17,600 730 240 18,570 9,700 30,060 9,700 28,270 600 600 4,000 4,000 4,600 4,600 45,670 35,608 50,270 40,208 $ 80,330 568,478 Total liabilities and stockholders' equity Weller Corporation (dollars in thousands) Sales Cost of goods sold Gross margin Comparative Income Statement and Reconciliation This Year $ 80,960 45,720 Last Year $64,000 38,000