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 910,000 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) 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 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term. Total current liabilities Long-term liabilities: Bonds payable Total liabilities This Year Last Year $ 1,506 15,500 $1,720 10,300 10,250 8,640 1,910 2,320 29,166 22,980 7,100 7,100 20,300 27,400 $ 56,566 20,100 27,200 $ 50,180 $ 10,600 820 $ 8,850 1,250 410 11,830 410 10,510 6,250 6,250 18,080 16,760 Stockholders' equity: Common stock 910 910 Additional paid-in capital 4,750 4,750