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 the year was $24. All of the company’s sales
are on account.
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.)
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear
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