Comparative financial statements for Weller Corporation for the fiscal year ending December 31 appear below. The company did not issue any new common or preferred stock during the year. A total of 800,000 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 $0.25. The market value of the company’s common stock at the end of the year was $18. All of the company’s sales are on account.

Required:

Compute the following financial ratios for common stockholders for this year:

1. Gross margin percentage.
2. Earnings per share of common stock.
3. Price-earnings ratio.
4. Dividend payout ratio.
5. Dividend yield ratio.
6. Return on total assets.
7. Return on common stockholders’ equity.
8. Book value per share.

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Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 1,280 $ 1,560 9,100 Cash. Accounts receivable, net Inventory.... Prepaid expenses. 12,300 9,700 8,200 2,100 1,800 25,080 Total current assets 20,960 Property and equipment: Land.. Buildings and equipment, net. 6,000 19,200 6,000 19,000 Total property and equipment . 25,200 25,000 $50,280 $45,960 Total assets. Liabilities and Stockholders' Equity Current liabilities: Accounts payable .. Accrued payables... Notes payable, short term $ 9,500 $ 8,300 600 700 300 300 Total current liabilities 10,400 9,300 Long-term liabilities: Bonds payable 5,000 5,000 Total liabilities. . 15,400 14,300 Stockholders' equity: Preferred stock. 2,000 2,000 Common stock. 800 800 Additional paid-in capital 2,200 2,200 Total paid-in capital . Retained earnings. Total stockholders' equity.. Total liabilities and stockholders' equity.. 5,000 29,880 5,000 26,660 34,880 31,660 $45,960 $50,280