Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...
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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 600,000 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 $22. 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 Current liabilities: Accounts payable Liabilities and Stockholders' Equity Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital 12,500 $ 1,270 10,000 $ 1,280 7,900 12,000 770 600 24,540 21,780 10,400 10,400 46,018 39,764 56,418 50,164 $ 80,958 $ 71,944 $ 18,600 920 $ 18,400 740 300 19,820 300 19,440 8,600 28,420 8,600 28,040 600 600 4,000 4,000 4,600 4,600 Retained earnings 47,938 Total stockholders' equity 52,538 39,304 43,904 Total liabilities and stockholders' equity $ 80,958 $ 71,944 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold $ 73,000 $ 65,000 39,000 32,000 Gross margin 34,000 33,000 Selling and administrative expenses: Selling expenses 11,300 10,900 Administrative expenses 6,700 6,900 Total selling and administrative expenses 18,000 17,800 Net operating income 16,000 15,200 Interest expense 860 Net income before taxes 15,140 860 14,340 Income taxes 6,056 5,736 Net income 9,084 450 8,634 39,304 $ 47,938 8,604 240 8,364 30,940 $ 39,304 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 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 600,000 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 $22. 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 Current liabilities: Accounts payable Liabilities and Stockholders' Equity Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital 12,500 $ 1,270 10,000 $ 1,280 7,900 12,000 770 600 24,540 21,780 10,400 10,400 46,018 39,764 56,418 50,164 $ 80,958 $ 71,944 $ 18,600 920 $ 18,400 740 300 19,820 300 19,440 8,600 28,420 8,600 28,040 600 600 4,000 4,000 4,600 4,600 Retained earnings 47,938 Total stockholders' equity 52,538 39,304 43,904 Total liabilities and stockholders' equity $ 80,958 $ 71,944 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold $ 73,000 $ 65,000 39,000 32,000 Gross margin 34,000 33,000 Selling and administrative expenses: Selling expenses 11,300 10,900 Administrative expenses 6,700 6,900 Total selling and administrative expenses 18,000 17,800 Net operating income 16,000 15,200 Interest expense 860 Net income before taxes 15,140 860 14,340 Income taxes 6,056 5,736 Net income 9,084 450 8,634 39,304 $ 47,938 8,604 240 8,364 30,940 $ 39,304 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
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