Exercise 16-2 (Algo) Financial Ratios for Assessing Liquidity (L016-2] 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 600,000 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 $28. All of the company's sales are on account. 0.8 points Skipped Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year 2 eBook $ 1,130 10,900 12,300 670 25,000 $ 1,340 7,800 11,400 690 21,230 References 10,700 39,886 50,586 $75,586 10,700 36,768 47,468 $68,698 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 Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $20,500 1,090 230 21,820 $17,800 880 230 18,910 9,200 31,020 9,200 28, 110 600 4,000 4,600 39,966 44,566 $75,586 600 4,000 4,600 35,988 40,588 $68, 698 Last Year $65,000 39,000 26,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $70,000 Cost of goods sold 43,000 Gross margin 27,000 Selling and administrative expenses: Selling expenses 11,300 Administrative expenses 7,400 Total selling and administrative expenses 18,700 Net operating income 8,300 Interest expense 920 Net income before taxes 7,380 Income taxes 2,952 Net income 4,428 Dividends to common stockholders 450 Net income added to retained earnings 3,978 Beginning retained earnings 35,988 Ending retained earnings $39,966 10,700 6,400 17,100 8,900 920 7,980 3,192 4,788 240 4,548 31,440 $35,988 Required: Compute the following financial data and ratios for this year: 1. Working capital. (Enter your answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal s.) 1. Working capital 2. Current ratio 3. Acid-test ratio