Exercise 16-5 (Algo) Financial Ratios for Assessing Profitability [LO16-5] 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 940,000 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 $25. All of the company's sales are on account. Meller 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 equipments 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 $5,304 $ 5,350 15,800 10,450 10,400 8,760 1,940 2,380 33,444 26,940 7,400 7,400 20,600 20,400 28,000 27,800 $ 61,444 $ 54,740 $ 10,900 $9,000 880 4401 1,400 440 12,220 10,840 10,000 10,000 22,220 20,040 940 940 4,900 4,900 5,840 5,840 Retained earnings 33,384 28,060 Total stockholders' equity 39,224 33,900 Total liabilities and stockholders equity $ 61,444 $ 54,740 Stockholders' equitys: Common stock Additional paid-in capital Total paid-in capital Che