80.2K

Verified Solution

Link Copied!

Comparative financial statements for Weiler 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 870,000 shares of common stock were outstanding. The interest rate on the bond payable 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 $22. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 2,242 15,100 19, ese 1,870 29,262 $ 3,130 10,100 8,482 2,240 23,950 Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Arrunte 5,700 19,90 26,600 $ 55,862 6,700 19,700 26,4ee 550, 350 1200 GRA $ 10, 208 740 370 11,310 $ 8,650 1, ese 370 10, e7e 7,500 18,810 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 7,588 17,578 870 4,550 5,420 31,632 37,052 $ 55,862 870 4,55 5,42e 27,360 32,789 $ 50, 350 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 86,000 Cost of goods sold 55,500 Gross margin 30,500 Selling and administrative expenses: Selling expenses 9,200 Administrative expenses 12,700 TAE11 AWARE Last Year $ 81,000 51,5ee 29,500 B, 700 11,700 10 An 31 Gaa PROLOLVE Aca Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings AU 21,900 8,600 900 7.700 3,080 4,620 348 4,272 27,360 $ 31,632 10 28,400 9, 10e 900 8,200 3,280 4,920 696 4,224 23, 136 $ 27,360 Required: Compute the following financial data for this year 1. Gross margin percentage (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 2. Net profit margin percentage (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12 3. Return on total assets. (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12.3).) 4. Return on equity. (Round your percentage answer to 2 decimal places (ie., 0.1234 should be entered as 12.34).) 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets % % % places (.e., 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets 4. Return on equity % % % %

Answer & Explanation Solved by verified expert

See Answer