Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6 Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new

6
image text in transcribed
image text in transcribed
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 840,000 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 the year was $20.00. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year fast Year Assets Current assets Cash $ 6,344 $ 6,400 Accounts receivable, net 12,700 9.300 Inventory 9,900 8,360 Prepaid expenses 1.840 2,180 Total current assets 30.784 26,240 Property and equipment: Land 6,400 6,400 Buildings and equipment, net 19,600 19.400 Total property and equipment 26,000 25,800 Total asseto 556,784 $52, 040 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 9,900 $ 8,500 Accrued liabilities 680 900 Notes payable, short tern 340 340 Total current liabilities 10,920 9,740 Long-term liabilities: Bonds payable 10.000 10,000 Total liabilities 20.920 19,740 Stockholders' equity Common stock 360 840 Additional paid in capital 4.400 4.400 Total paid-in capital 5,240 5,240 Retained coming 30,624 22.060 Total stockholders' equity 35,864 32,300 Total liabilities and stockholders' equity 556,784 552,040 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $83,000 $78,000 54,000 50,000 Cost of goods sold Gross margin 29,000 28,000 Selling and administrative expenses : Selling expenses 8,900 8,400 Administrative expenses 12,400 11,400 Total selling and administrative expenses 21,300 19,800 Net operating income 7,700 8,200 Interest expense 1,200 1,200 Net income before taxes 6,500 7,000 Income taxes 2,600 2,800 Net income 3,900 4,200 Dividends to common stockholders 336 672 Net income added to retained earnings 3,564 3,528 Beginning retained earnings 27,060 23,532 Ending retained earnings $30,624 $27,060 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 2c 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 4. Dividend yield ratio. (Round your 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions