1. Express one decimal place. ment in common-size percentages. Carry computations to Requi Comment briefly on the changes between the two years. 2. EXERCISE 15-2 Financial Ratios for Assessing Liquidity LO15-2 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 bond was 12%, 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 this year was $18. 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 .... $ 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: $ 9,500 $ 8,300 Accounts payable .... Accrued liabilities .... 600 700 300 300 Notes payable, short term Total current liabilities .. 10,400 9,300 Long-term liabilities: Bonds payable ..... 5,000 5,000 Total liabilities .... 15,400 14,300 Stockholders' equity: 800 800 Common stock ..... Additional paid-in capital 4,200 4,200 5,000 5,000 Total paid-in capital .... Retained earnings 29,880 26,660 34,880 31,660 Total stockholders' equity. $50,280 $45,960 Total liabilities and stockholders' equity . . ... www Chapter 15 Comparative Income Statement and Reconciliation (dollars in thousands) Weller Corporation Last Year This Year $74,000 $79,000 52,000 48,000 Sales.. 26,000 Cost of goods sold 27,000 Gross margin 8,000 Selling and administrative expenses: Selling expenses ... Administrative expenses ... 8,500 12,000 11,000 20,500 19,000 Total selling and administrative expenses .. 7,000 6,500 Net operating income 600 600 Interest expense . दाहि 5,900 6,400 Net income before taxes .. .. Income taxes .. 2,360 2,560 Net income 3,540 3,840 Dividends to common stockholders 320 600 Net income added to retained earnings .... Beginning retained earnings . 3,220 3,240 26,660 23,420 Ending retained earnings .. $29,880 $26,660 aleea/ Required: Compute the following financial data and ratios for this year: 1. Working capital. 2. Current ratio. 3. Acid-test ratio. EXERCISE 15-3 Financial Ratios for Asset Management LO15-3 Refer to the data in Exercise 15.2 for Woll