ve Saved Help Exercise 14-2 (Algo) Financial Ratios for Assessing Liquidity [LO14-2] 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 $20. 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 1,120 10,800 12,200 $1,220 6,600 11,900 Prepaid expenses 660 $50 Total current assets 24,780 20,270 Property and equipments Land 10,500 10,500 Buildings and equipment, net 45,313 39,024 Total property and equipment 55,013 49,524 Total assete 80,593 $ 69,794 are on account Meller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year points Sepet Book H Print References 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 assete 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' equitys Common stock Additional paid-in capital $ 1,120 10,800 12,200 $ 1,220 6,600 11,900 660 550 24,780 20,270 10,500 10,500 45,313 39,024 55,013 49,524 $ 69,794 $ 80,593 619,700 1,030 110 20,840 8,600 29,440 $18,200 800 110 19,110 8,600 27,710 500 500 4,000 4,000 4.500 4,500 Betained earnings 46,653 37,504 Total stockholders' equity $1,353 42,004 Total liabilities and stockholders' equity $ 90.593 69,794 Weller Corporation, Comparative Income Statement and Reconciliation Total paid-in capital Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year points Sales Coat of goods sold $ 71,000 $65,000 36,000 36,000 Gross margin 35,000 29,000 Spe Selling and administrative expenses Selling expenses 11,100 10,200 Administrative expenses 7,300 6,200 Total selling and administrative expenses 18,400 16,400 eBook Net operating incone 16,600 12,600 Interest expense 860 860 Hint Net incone before taxes Print References Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 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.) 1. Working capital 2. Current ratio 3. Acid-test ratio 15,740 6,296 9,444 375 9,069 37,584 $ 46,653 7,044 200 6,844 30,740 $ 37,584 11,740 4,696