Exercise 16-2 (Algo) Financial Ratios for Assessing Liquidity (L016-2) 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 $075 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 willer Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,230 9,300 13,000 680 24,210 $ 1,340 7,600 10,800 520 20,760 10,100 43,647 5 747 $77.952 10,100 37,436 47/536 $67,796 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 abilities Hotes payable, short term Total current Ilabilities Long-term liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid in capital Total pald.in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $19,900 930 290 $18,500 360 290 19,650 21,120 8.900 30,020 500 4,00 3.900 28.550 500 4,000 4,500 34,746 39,246 $67,796 43,437 47,937 $72,957 Total stockholders' equity Total liabilities and stockholders' equity 47,937 $77,957 39,246 $67,796 Last Year $65,000 40,000 25,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $75,000 Cost of goods sold 41,000 Gross margin 34,000 Selling and administrative expenses: Selling expenses 11,100 Administrative expenses 6,900 Total selling and administrative expenses 18,000 Net operating income 16,000 Interest expense 890 Net income before taxes 15, 110 Income taxes 6,044 Net income 9,066 Dividends to common stockholders 375 Net income added to retained earnings 8,691 Beginning retained earnings 34,746 Ending retained earnings $43,437 10,200 6,900 17,100 7,900 890 7,010 2,804 4,206 200 4,006 30,740 $34,746 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 places.) 1. Working capital 2. Current ratio 3. Acid-test ratio