Exercise 16-4 (Algo) Financial Ratios for Debt Management [LO16-4] 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 $27. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year 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 $ 1,120 10,500 12,500 $1,210 7,500 12,200 740 630 24,860 21,540 9,300 9,300 52,744 42,882 62,044 52,182 $ 86,904 $ 73,722 $19,600 1,090 $ 10,600 780 0 150 20,690 19,530 8,300 8,300 28,990 27,830 2,000 2,000 4,000 4,000 6,000 6,000 51,914 39,892 57,914 45,892 Total liabilities and stockholders' equity $ 86,904 $ 73,722 Stockholders' equity Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity