Exercise 15-2 Financial Ratios for Assessing Liquidity [LO15-2] 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 500,000 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 $20. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $1,160 $1,400 8,200 11,400 560 21,560 Cash Accounts receivable, net Inventory Prepaid expenses 10,300 12,800 690 24,950 Total current assets Property and equipment: Land 9,300 51,59841,619 60,89850,919 $85,848 $72,479 9,300 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: $20,200 $19,200 840 190 20,230 Accounts payable Accrued liabilities 1,080 190 21,470 Notes payable, short term Total current liabilities Long-term liabilities: 9,6009,600 31,07029,830 Bonds payable Total liabilities Stockholders' equity: 500 4,000 4,500 38,149 54,77842,649 $85,848 $72,479 500 4,000 4,500 50,278 Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: $75,000 $65,000 -35-000_ 35,000 30,000 40,000 10,900 7,400 6,000 2016,900 Selling expenses 10,800 Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 18,200 21,800 960 20, 840 8,336 12,504 375 12,129 38,149 13,100 960 12,140 4,856 7,284 375 6,909 311240 $50,278 $38,149 Required: Compute the following financial data and ratios for this year: 1. Working capital. (Enter answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 1. Working capital 2. Current ratio 3. Acid-test ratio