Exercise 14-5 (Algo) Financial Ratios for Assessing Profitability [LO14-5] 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 930,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, 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) This Year Last Year Current liabilities: Accounts payable Notes payable, short term Long-tern liabilitiesi Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipments Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Accrued liabilities Total current liabilities Bonds payable $ 4,038 15,700 $ 4,140 10,400 10,350 8,720 1,9301 2,360 32,018 25,620 7,300 7,300 20,500 20,300 27,800 27,600 $ 59,818 $53,220 $ 10,000 $9.950 860 1,356 430 430 12,090 10,730 0,950 8,950 Total liabilities 20,40 19,400 Stockholders' equity: Common stock 930 930 Additional paid-in capital, Total paid-in capital 4,850 4,850 Retained earnings 5,200 5,700 33,198 27,960