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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.)
1. | Earnings per share. (Round your answer to 2 decimal places.)
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Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal ending December 31 appear below. The company did not issue any new common stock during th year. A total of 900,000 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 year was $23.00. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses $ 240 $ 510 15,400 10,250 8,600 1,900 2,300 10,200 Total current assets 27,740 21,660 Property and equipment: Land 7,000 7,000 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity 20,200 20,000 27,200 27,000 $54,940 $48,660 Current liabilities Accounts payable Accrued liabilities $10,500 $ 8,800 800 ,200 400 Notes payable, short term 400 Total current liabilities Long-term liabilities 11,700 10,400 5,000 16,700 15,400 Bonds payable 5,000 Total liabilities Stockholders' equity: Common stock Additional paid-in capital 900 4,700 900 4,700 Total paid-in capital Retained earnings 5,600 5,600 32,640 27,660 38,240 33,260 $54,940 $48,660 Total stockholders'equity Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
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