value 0.00 points Comparative financial statements for Weller Corporation, a mer

Question

value 0.00 points Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal 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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $1.00 last year and $0.65 this year. The market value of the company's common stock at the end of the year was $21. 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 $ 1,120 $ 1,210 6,700 13,100 10,700 670 9,600 760 Total current assets 24,580 19,280 Property and equipment: Land 9,400 9,400 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity 44.441 40.428 53,841 49,828 $78,421$69,108 Current liabilities Accounts payable Accrued liabilities $18,800 $17,800 870 300 Notes payable, short term 300 Total current liabilities Long-term liabilities 20,070 18,970 8,700 28,770 27,670 Bonds payable 8,700 otal liabilities Stockholders' equity 500 4,000 500 Common stock Additional paid-in capital 4,000 Total paid-in capital Retained earnings 4,500 4,500 45.151 36.938 49.651 41.438 $78,421$69,108 Total stockholders' equity Total liabilities and stockholders' equity

Explanation / Answer

In Thousands Particulars Current Year Previous Year Current Assets (A)              24,580.00              19,280.00 Current Liabilities (B)              20,070.00              18,970.00 Net Working Capital (A-B)                4,510.00                    310.00 Particulars Current Year Previous Year Current Assets (A)              24,580.00              19,280.00 Current Liabilities (B)              20,070.00              18,970.00 Current Ratio (A/B)                         1.22                         1.02 In Thousands Particulars Current Year Previous Year Current Assets              24,580.00              19,280.00 Less: Inventory              13,100.00              10,700.00 Less: Prepaid Expenses                    760.00                    670.00 Liquid Assets (A)              10,720.00                7,910.00 Current Liabilities (B)              20,070.00              18,970.00 Quick Ratio (A/B)                         0.53                         0.42

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