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 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 $26. All of the company's sales are on account. Iotal assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 11,010$ vo, UN4 \begin{tabular}{rr} $19,700 & $18,800 \\ 980 & 750 \\ 200 & 200 \\ \hline 20,880 & 19,750 \end{tabular} \begin{tabular}{rr} 9,100 & 9,100 \\ \hline 29,980 & 28,850 \\ \hline \end{tabular} \begin{tabular}{rr} 600 & 600 \\ 4,000 & 4,000 \\ \hline 4,600 & 4,600 \\ 42,738 & 35,154 \\ \hline 47,338 & 39,754 \\ \hline$77,318 & $68,604 \\ \hline \end{tabular} Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense This Year Last Year \begin{tabular}{rr} $71,000 & $65,000 \\ 39,000 & 40,000 \\ \hline 32,000 & 25,000 \\ \hline 11,200 & 10,300 \\ 6,500 & 6,700 \\ \hline 17,700 & 17,000 \\ \hline 14,300 & 8,000 \\ 910 & 910 \\ \hline \end{tabular} 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.)