Exercise 16-4 (Static) 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 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, 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 $18. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) 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: This Year Last Year $1,280 $ 1,568 12,300 9,100 9,700 8,200 1,800 2,100 25,080 20,960 6,000 6,000 19:200 25,200 19,000 25,000 $ 50,280 $ 45,960 $9,500 600 $8,300 200 300 10,400 9,300 5,000 5,000 15,400 14,300 800 800 4,200 4,200 Retained earnings 5,000 5,000 29,880 26,660 Total stockholders' equity 34,880 31,660 Total liabilities and stockholders' equity $ 50,280 $ 45,960 Common stock Additional paid-in capital Total paid-in capital