Exercise 16-2 (Algo) Financial Ratios for Assessing Liquidity [LO16-2] 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 700,000 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) Thin Year Last Year Assets Current assetsr 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 Bonda payable Total liabilities Stockholders' equity $1,110 10,800 12,800 5 1,290 8,300 11,300 780 660 25,490 21,550 10,800 10,800 46,695 39,630 57,495 50,430 $ 82,985) $ 71,980 5 19,300 $ 19,300 1,000 110 010 110 20,410 20,220 9,000 9,000 29,410 29,220 700 700 4,000 4,000 Total paid-in capital 4,700 4,700 Retained earnings 48,025 38,060 Total stockholders' equity 53,575 42,760 Total liabilities and stockholders' equity) $82.985 5 71,980 Common stock Additional paid-in capital