Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December...
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Accounting
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 890,000 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 $0.40. The market value of the companys common stock at the end of the year was $22.50. All of the companys sales are on account.
Weller Corporation Comparative Balance Sheet (dollars in thousands)
This Year
Last Year
Assets
Current assets:
Cash
$
4,774
$
5,550
Accounts receivable, net
15,300
10,200
Inventory
10,150
8,560
Prepaid expenses
1,890
2,280
Total current assets
32,114
26,590
Property and equipment:
Land
6,900
6,900
Buildings and equipment, net
20,100
19,900
Total property and equipment
27,000
26,800
Total assets
$
59,114
$
53,390
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
10,400
$
8,750
Accrued liabilities
780
1,150
Notes payable, short term
390
390
Total current liabilities
11,570
10,290
Long-term liabilities:
Bonds payable
10,000
10,000
Total liabilities
21,570
20,290
Stockholders' equity:
Common stock
890
890
Additional paid-in capital
4,650
4,650
Total paid-in capital
5,540
5,540
Retained earnings
32,004
27,560
Total stockholders' equity
37,544
33,100
Total liabilities and stockholders' equity
$
59,114
$
53,390
Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
This Year
Last Year
Sales
$
88,000
$
83,000
Cost of goods sold
56,500
52,500
Gross margin
31,500
30,500
Selling and administrative expenses:
Selling expenses
9,400
8,900
Administrative expenses
12,900
11,900
Total selling and administrative expenses
22,300
20,800
Net operating income
9,200
9,700
Interest expense
1,200
1,200
Net income before taxes
8,000
8,500
Income taxes
3,200
3,400
Net income
4,800
5,100
Dividends to common stockholders
356
356
Net income added to retained earnings
4,444
4,744
Beginning retained earnings
27,560
22,816
Ending retained earnings
$
32,004
$
27,560
Required:
Compute the following financial data for this year:
1.
Earnings per share. (Round your answer to 2 decimal places.)
2.
Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.)
3.
Dividend payout ratio. (Roundyourintermediate calculations and final answer to 2 decimal places.)
4.
Dividend yield ratio. (Roundyourintermediate calculations and final answer to 2 decimal places.)
5.
Book value per share. (Round your answer to 2 decimal places.)
Answer & Explanation
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