Che Comparative financial statements for Weller Corporation, a merchandising com
ID: 2588639 • Letter: C
Question
Che 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 800,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 12%. The income tax rate was 40% and the dividend per share of common stock wes $0.40 this year. The market value of the company's common stock at the end of the year was $18. All of the company's sales are on account oints Weller Corporation Comparative balance Sheet (dollara in thoosands) eBook Current assetS Cash Accounta receivable, net Inventory Prepaid expenses 12,300 9-700 1,280 1,560 9,100 8,200 25 0BO20 960 Total current assets Property and equipnentL Priet Land 6,000 6,000 auildings and equipmene, net total propezty and equipnent 25 200125 099 $50,28D45 960 References TotaA escete Liabilities and Stockholders Equity Cuezent 1Eabilielest Accounte payablLe hocrued Lab 1ities Botes payable.sbort ten 9.500 600 .. 300 700 100 Total current 1iabilities Long-tern btles bonds payable Total 1abilitien 534092 3 Stockholders eqaisy 800 Addit ional paid-in copssal Total pald-in eapi Retaines earninge Total steoekioldees equis)y Total 11abititien and atockholdersequity 000 s 000 $50 , 280 45,960 .ofs ill Next >Explanation / Answer
Working capital = Current assets-Current Liabilities =25080-10400= 14680 Current ratio= Current assets/Current Liabilities =25080/10400= 2.41 Acid test ratio=(25080-9700-1800)/10400= 1.31