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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 700,000 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 companys common stock at the end of this year was $26. All of the companys sales are on account.

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 70,000 $ 66,000 Cost of goods sold 36,000 37,000 Gross margin 34,000 29,000 Selling and administrative expenses: Selling expenses 10,900 10,300 Administrative expenses 6,700 6,900 Total selling and administrative expenses 17,600 17,200 Net operating income 16,400 11,800 Interest expense 960 960 Net income before taxes 15,440 10,840 Income taxes 6,176 4,336 Net income 9,264 6,504 Dividends to common stockholders 525 Net income added to retained earnings 8,739 6,224 Beginning retained earnings 36,864 30,640 Ending retained earnings $ 45,603 $ 36,864 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 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 70,000 $ 66,000 Cost of goods sold 36,000 37,000 Gross margin 34,000 29,000 Selling and administrative expenses: Selling expenses 10,900 10,300 Administrative expenses 6,700 6,900 Total selling and administrative expenses 17,600 17,200 Net operating income 16,400 11,800 Interest expense 960 960 Net income before taxes 15,440 10,840 Income taxes 6,176 4,336 Net income 9,264 6,504 Dividends to common stockholders 525 Net income added to retained earnings 8,739 6,224 Beginning retained earnings 36,864 30,640 Ending retained earnings $ 45,603 $ 36,864 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

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