Weller corporation

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 600,0DO 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 $0.50. 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 3 1 190 S 1.240 Accounts receivable, net 10.300 7.000 Inventory 13.500 10.700 Prepaid expenses 720 650 Total current assets 25 710 19.590 Property and equipment: Land 9.700 9 700 Buildings and equipment, net 44.446 40,588 Total property and equipment 54,146 50 288 Total assets 579.856 $69.878 Liabilities and Stockholders Equity Current liabilities Accounts payable $18.500 $ 17 900 Accrued liabilities 1.010 830 Notes payable, short term 130 130 Total current liabilities 19.640 18 860 Long-term liabilities: Bonds payable 8.700 Total liabilities 28 340 27.560 Stockholders equity Common stock 600 600 Additional paid-in capital 4000 4000 Total paid-in capita 4.600 4 600 Retained earnings 46.916 37 718 Total stockholders equity 51.516 12 318 Total liabilities and stockholders equity $79.856 $ 69.878 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year ! Last Year! Bales $68 000 $ 64 000 Cost of goods sold 34,000 34,000 Gross margin 34,000 30.090 Selling and administrative expenses Selling expenses 10.700 11.000 Administrative expenses 3.800 6,000 Total selling and administrative expenses 17,300 17.000 Net operating income 16.700 13.000 Interest expense 870 870 Net income before taxes 15.830 12,130 Income taxes 6,332 4.852 Net income 9 498 1278 Dividends to common stockholders 300 300 Net income added to retained earnings 9,198 6.978 Beginning retained earnings 37,718 30.740 Ending retained earnings $46,916 537,718 Required: Compute the following financial data and ratios for this year: 1. Working capital 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