80.2K

Verified Solution

Link Copied!

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 $26. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Lant Year $ 1,120 10,500 13,400 690 25,710 $ 1.290 6.000 10,900 540 19,530 10,600 37.681 48,282 $73,991 10.600 38,82e 49.428 $68,958 es Assets Current assets Canh Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities monda payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earning Total stockholders' equity Total liabilities and stockholders' equity $19,000 910 220 20,130 $17.600 730 220 10.550 8,200 28,330 8.200 26.750 500 .000 4.500 41.161 45.661 $73,991 500 4,000 4,500 37,708 42. 2018 $69,958 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $67,000 $66,000 Cost of goods sold 41,000 36,000 Gross margin 26,000 30,000 Selling and administrative expenses 1 Selling expenses 11,500 10,000 Administrative expenses 7,300 6,900 Total selling and administrative expenses 18,800 16,900 Net operating income 7,200 13,100 Interest expense 820 820 Net income before taxes 6,380 12,280 Income taxes 2,552 4,912 Net income 3,828 7,368 Dividends to common stockholders 375 200 Net income added to retained earnings 3,453 7,168 Beginning retained earnings 37, 708 30, 540 Ending retained earnings $41,161 $37, 708 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

Answer & Explanation Solved by verified expert

See Answer