wo years. EXERCISE 15-2 Financial Ratios for Assessing Liquidity LO15-2 ending December 31 appear below. The company did not issue any new common stock during the payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was this year was $18. All of the company’s sales are on account. year Deceof 800,000 shares of common stock were outstanding, The interest rate on the bond year. $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of 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 epeA Total property and equipment ... 25,200 25,000 Total assets $50,280 $45,960 Liabilities and Stockholders' Equity Current liabilities: Accounts payable.... $ 9,500 $ 8,300T 600 700 Accrued liabilities .. 300 Notes payable, short term 300 10,400 9,300 of s Total current liabilities Long-term liabilities: Bonds payable .. 5,000 5,000 15,400 14,300 Total liabilities .... Stockholders' equity: 800 800 Common stock .. 4,200 4,200 Additional paid-in capital . 5,000 5,000 Total paid-in capital ... Retained earnings .. 29,880 26,660 34,880 31,660 Total stockholders' equity ... $45,960 $50,280 Total liabilities and stockholders' equity..... Beginn ng TetuliIcu u $29,880 $26,6 Ending retained earnings . 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 Weller Corporation. Required: Compute the following financial data for this year: Accounts receivable turnover. (Assume that all sales are on account.) 1. 2. Average collection period. 3. Inventory turnover. 4. Average sale period. 5. Operating cycle. 6. Total asset turnover. EXERCISE 15–4 Financial Ratios for Debt Management LO15-4 Refer the data in Exercise 15–2 for Weller Corporat