Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31...
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Accounting
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 920,000 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 companys common stock at the end of this year was $24.00. All of the companys sales are on account.
Weller Corporation Comparative Balance Sheet (dollars in thousands)
This Year
Last Year
Assets
Current assets:
Cash
$
2,772
$
2,930
Accounts receivable, net
15,600
10,350
Inventory
10,300
8,680
Prepaid expenses
1,920
2,340
Total current assets
30,592
24,300
Property and equipment:
Land
7,200
7,200
Buildings and equipment, net
20,400
20,200
Total property and equipment
27,600
27,400
Total assets
$
58,192
$
51,700
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
10,700
$
8,900
Accrued liabilities
840
1,300
Notes payable, short term
420
420
Total current liabilities
11,960
10,620
Long-term liabilities:
Bonds payable
7,500
7,500
Total liabilities
19,460
18,120
Stockholders' equity:
Common stock
920
920
Additional paid-in capital
4,800
4,800
Total paid-in capital
5,720
5,720
Retained earnings
33,012
27,860
Total stockholders' equity
38,732
33,580
Total liabilities and stockholders' equity
$
58,192
$
51,700
Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
This Year
Last Year
Sales
$
91,000
$
86,000
Cost of goods sold
58,000
54,000
Gross margin
33,000
32,000
Selling and administrative expenses:
Selling expenses
9,700
9,200
Administrative expenses
13,200
12,200
Total selling and administrative expenses
22,900
21,400
Net operating income
10,100
10,600
Interest expense
900
900
Net income before taxes
9,200
9,700
Income taxes
3,680
3,880
Net income
5,520
5,820
Dividends to common stockholders
368
736
Net income added to retained earnings
5,152
5,084
Beginning retained earnings
27,860
22,776
Ending retained earnings
$
33,012
$
27,860
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. (Round your intermediate calculations and final answer to 2 decimal places.)
4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.)
5. Book value per share. (Round your answer to 2 decimal places.)
1.
Earnings per share
2.
Price-earnings ratio
3.
Dividend payout ratio
%
4.
Dividend yield ratio
%
5.
Book value per share
Answer & Explanation
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