Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6 10 points Skipped Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did
6 10 points Skipped 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 970,000 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 of this year was $26.50. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year eBook Assets Hint References 6 10 points Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term Liabilities: Bonds payable Total Liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation $3,382 $4,230 16,100 9,100 10,550 8,880 1,978 2,440 31,922 24,650 7,700 7,700 20,900 20,700 28,600 28,400 $ 60,522 $ 53,050 $11,200 $9,150 1,550 470 940 470 12,610 11,170 7,500 7,500 20,110 18,670 970 970 5,050 5,ese 6,020 6,820 34,392 28,360 40,412 34,380 $ 60,522 $ 53,050 Comparative Income Statement and Reconciliation (dollars in thousands) Sales This Year lact Year Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Cost of goods sold Skipped Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income eBook Interest expense Net income before taxes Income taxes Net income Ask 60,500 This Year Last Year $ 96,000 $91,000 56,500 35,500 34,588 10,200 9,700 13,700 12,700 23,900 22,400 11,600 12,100 900 900 10,700 4,280 11,200 4,480 6,420 6,720 388 6,032 28,360 776 5,944 22,416 Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: $ 34,392 $28,360 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started