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 $ 2,242 15,100 $ 3,130 10,100 10,050 8,480 1,870 2,240 29,262 23,950 Property and equipment: Land 6,700 6,700 Buildings and equipment, net 19,900 19,700 Total property and equipment 26,600 26,400 Total assets $55,862 $ 50,350 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable. $10,200 Accrued liabilities $8,650 740 1,050 Notes payable, short term 370 370 Total current Liabilities 11,310 10,070 Long-term Liabilities: Bonds payable Total liabilitie 7,500 7,500 17 578