Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal 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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $1.25 last year and $0.90 this year. The market value of the company's common stock at the end of the year was $24. 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 $ 1,200 $ 1,300 Accounts receivable, net 9.900 7,500 Inventory 13,100 12.100 Prepaid expenses 750 560 Total current assets 24,950 21,460 Property and equipment Land 10,000 10,000 Buildings and equipment, net 44,614 38,582 Total property and equipment 54,614 48,582 Total assets $79,564 $ 70,042 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable $19,300 1,030 160 $ 17,600 750 160 20,490 18,510 8,300 8,300 Total liabilities 28,790 26,810 600 4,000 600 4.000 Stockholders' equity Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 4.600 46,174 4.600 38,632 50.774 43,232 Total liabilities and stockholders' equity $79,564 $ 70,042 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $67,000 $ 65,000 Cost of goods sold 35,000 33.000 Gross margin 32.000 32,000 Selling and administrative expenses: Selling expenses 11.200 10,900 Administrative expenses 6,500 6.200 Total selling and administrative expenses 17,700 17,100 Net operating income 14.300 14,900 Interest expense 830 830 Net income before taxes 13,470 14.070 Income taxes 5,388 5,628 8,082 540 8,442 750 Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earings 7,542 38.632 7,692 30,940 $46,174 $ 38,632 Required: Compute the following financial data and ratios for this year: 1. Working capital. (Enter your answer in thousands) Working capital 2. Current ratio. (Round your answer to 2 decimal places.) Current ratio 3. Acid-test ratio. (Round your answer to 2 decimal places.) Acid-test ratio
