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4. three answers in one please help Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The
4. three answers in one please help
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 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, 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 the year was $22. 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 $ 1,270 $ 1,390 Accounts receivable, net 9,500 7,100 Inventory 13,100 11,200 Prepaid expenses 780 680 Total current assets 24,650 20,370 Property and equipment: Land 9,800 9,800 Buildings and equipment, net 49,010 40,660 Total property and equipment 56,810 50,460 Total assets $83,460 $70,830 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $20,400 $17.500 Accrued liabilities 940 890 Notes payable, short tern 130 Total current liabilities 21,340 18,520 Long-term liabilities: Bonds payable 8,500 8,500 Total liabilities 29,840 27,620 Stockholders' equity Common stock 2,000 2,000 Additional paid in capital 4,000 4,000 Total paid-in capital 6,000 6,000 Retained earnings 47.620 37,810 Total stockholders' equity 53,620 43,810 Total liabilities and stockholders' equity $83,460 $78,830 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $72,000 $64,000 Cost of goods sold 37,000 35,000 Gross margin 35,000 29,000 Selling and administrative expenses: Selling expenses 10,900 10,700 Administrative expenses 6,500 6,000 Total selling and administrative expenses 17,400 16,700 Net operating income 17,600 12,300 Interest expense 850 850 Net income before taxes 16, 750 11,450 Income taxes 6,700 4,580 Net income 10,050 6,870 Dividends to common stockholders 240 600 Net income added to retained earnings 9,810 6,270 Beginning retained earnings 37,810 31,540 Ending retained earnings $47,620 $37,810 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. (For all requirements, round your answers to 2 decimal places.) 1. 2. Times interest eamed ratio Debt-to-equity ratio Equity multiplier 3 Step by Step Solution
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