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its not 0.55 Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue
its not 0.55
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 $23. 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 $1,2609,70012,500$1,4008,20011,800 Long-term liabilities: \begin{tabular}{rr} 640 & 510 \\ \hline 24,100 & 21,910 \\ \hline \end{tabular} 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 \begin{tabular}{rr} $19,800 & $19,100 \\ 1,080 & 820 \\ 200 & 200 \\ \hline 21,080 & 20,120 \end{tabular} \begin{tabular}{rr} 8,100 & 8,100 \\ \hline 29,180 & 28,220 \\ \hline \end{tabular} \begin{tabular}{rr} 500 & 500 \\ 4,000 & 4,000 \\ \hline 4,500 & 4,500 \\ 47,013 & 39,234 \\ \hline 51,513 & 43,734 \\ \hline$80,693 & $71,954 \\ \hline \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.)Step by Step Solution
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