d Sites e Web Slice Gallery Previous Attempt View Comparative financial statemen
ID: 2436714 • Letter: D
Question
d Sites e Web Slice Gallery Previous Attempt View Comparative financial statements for Weller Corporation, a merchandsing company, for the fiscal year ending Dacember 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 an the bonds, which were sold at ter face vaus, was 10%. The reorme tax rate was 40%, and the drndeed per share or common stock was 50 50 The market value of the company's common stock at the and of the year was $20. All of the company's sales are on account Weller Corporation Comparative Balance Sheet This Year Last Year Assets Current assets 5 1.120 $ 1.340 9,600 8.100 12.200 12.200 680 Cash Accounts recervable, net Prepaid expenses Total current assets Property and equipment 750 23,670 22.320 9,700 9.700 Buldings and equipment, net Tatal property and oquipeoent Total assets 43,628 37134 53,328 46.834 76,998 $69,154 Liabilities and Stockholders Equity Current liabltes Accounts payable Accrved liabides 19,000 $17 600 730 130130 Notes payable, short term 20,110 18,460 9,600 9,800 29,710 28,060 Total cureent lablites Long-term liabibes Bonds payable Total liabilties Stockholders equity Common stock Additional paid-in capital 500 500 ,0004000 Total paid-in captal Retained eanings 4,5004,500 42,788 36,594 Total slockholders' equity 47288 4109 $76.998 $69,154 Total lablities and stockholders equity Weller Corporation Comparatve Income Statement and Reconcilation doliars in thousands) Thie Year Last Year 02Explanation / Answer
1. Working Capital = Total Current assets - Total Current liabilities = 23,670 - 20,110 = $3,560
2. Current Ratio = Total Current assets ÷ Total Current liabilities = 23,670 ÷ 20,110 = 1.18
3. Acid-test ratio = (total current assets - inventory) ÷ Total Current liabilities = (23,670 - 12,200) ÷ 20,110 = 0.57
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