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 870,000 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 $22. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land ces Buildings and equipment, net Total property and equipment $ 2,242 $ 3,130 15,100 10,050 10,100 8,480 1,870 29,262 2,240 23,950 6,700 6,700 19,900 26,600 $ 55,862 19,700 26,400 $ 50,350 Long-term liabilities: Total assets Liabilities and Stockholders' Equity. Current liabilities: Accounts payable Accrued liabilities Notes payable, short term. Total current liabilities Bonds payable $ 10,200 740 370 $ 8,650 1,050 370 11,310 10,070 7,500 7,500 Total liabilities 18,810 17,570 Stockholders' equity: Common stock 870 Additional paid-in capital 4,550 870 4,550 Total paid-in capital 5,420 5,420