Weller Corporation Comparative Balance Sheet (dollars in thousands) |
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This Year | Last Year | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 1,280 | $ | 1,560 | ||
Accounts receivable, net | 12,300 | 9,100 | ||||
Inventory | 9,700 | 8,200 | ||||
Prepaid expenses | 1,800 | 2,100 | ||||
Total current assets | 25,080 | 20,960 | ||||
Property and equipment: | ||||||
Land | 6,000 | 6,000 | ||||
Buildings and equipment, net | 19,200 | 19,000 | ||||
Total property and equipment | 25,200 | 25,000 | ||||
Total assets | $ | 50,280 | $ | 45,960 | ||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 9,500 | $ | 8,300 | ||
Accrued liabilities | 600 | 700 | ||||
Notes payable, short term | 300 | 300 | ||||
Total current liabilities | 10,400 | 9,300 | ||||
Long-term liabilities: | ||||||
Bonds payable | 5,000 | 5,000 | ||||
Total liabilities | 15,400 | 14,300 | ||||
Stockholders' equity: | ||||||
Common stock | 800 | 800 | ||||
Additional paid-in capital | 4,200 | 4,200 | ||||
Total paid-in capital | 5,000 | 5,000 | ||||
Retained earnings | 29,880 | 26,660 | ||||
Total stockholders' equity | 34,880 | 31,660 | ||||
Total liabilities and stockholders' equity | $ | 50,280 | $ | 45,960 | ||
Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) |
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This Year | Last Year | |||||
Sales | $ | 79,000 | $ | 74,000 | ||
Cost of goods sold | 52,000 | 48,000 | ||||
Gross margin | 27,000 | 26,000 | ||||
Selling and administrative expenses: | ||||||
Selling expenses | 8,500 | 8,000 | ||||
Administrative expenses | 12,000 | 11,000 | ||||
Total selling and administrative expenses | 20,500 | 19,000 | ||||
Net operating income | 6,500 | 7,000 | ||||
Interest expense | 600 | 600 | ||||
Net income before taxes | 5,900 | 6,400 | ||||
Income taxes | 2,360 | 2,560 | ||||
Net income | 3,540 | 3,840 | ||||
Dividends to common stockholders | 320 | 600 | ||||
Net income added to retained earnings | 3,220 | 3,240 | ||||
Beginning retained earnings | 26,660 | 23,420 | ||||
Ending retained earnings | $ | 29,880 | $ | 26,660 | ||
Required:
Compute the following financial data and ratios for this year:
1. Working capital. (Enter 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 | = | Current Assets - Current Liabilities | |||||||
= | $ 25,080 | - | $ 10,400 | |||||||
= | $ 14,680 | |||||||||
2) | Current ratio | = | Current Assets /Current Liabilities | |||||||
= | $ 25,080 | / | $ 10,400 | |||||||
= | 2.41 | |||||||||
3) | Acid-test Ratio | = | (Current assets-Inventory-Prepaid Expense)/Current Liabilities | |||||||
= | (25080-9700-1800)/10400 | |||||||||
= | 1.31 | |||||||||
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