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Comparative financial statements for Weller Corporation, a merchandising company

ID: 2499184 • Letter: C

Question

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 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. 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.

       

       

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 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. 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.

Explanation / Answer

Working Capital

=

Current Assets -Current Liabilities = 23,220-20,550 = $2,670

Current Ratio = Current Assets/Current Liabilities = 23,220/20,550 =1.13

2. Current ratio. (Round your answer to 2 decimal places.)
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