6 Exercise 14-5 Financial Ratios for Assessing Profitability [LO14-5) 2.14 points 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 lost year and $0.40 this year. The market value of the company's common stock at the end of the year was $26. All of the company's sales are on account 02 203 eBook Mint $ 3,302 16,100 10.550 1.970 31.922 $ 4,230 9,100 8,000 2.440 24,650 Weller Corporation Comparative Balance sheet dollars in thousands Assets Current antai Caah Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment Land Buildings and equipment.net Total property and equipment Total annet Liabilities and stockholders Equity Current liabilitat Mercounts payable Acered liabilities Notes payable, short term Total ecrant liabilities Long-tern liabilitat tonda payable Total liabilities litockholders' woity! Con stock Additional paid in capital Total paid in capital 7.700 20.900 20.600 $60,522 7.700 20,700 20.400 853.050 References $9,150 $11,200 10 426 12.610 470 11,170 1,500 20.110 2.500 10,670 970 5.050 6,020 34,39 270 5,050 6020 20, 360 MMM 6 LULA: Lagu Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 34,392 40,412 $60.522 28,360 34,380 $53,050 2.14 points 02:30:51 Book Heller Corporation Comparative Income Statement and Reconciliation (dollars in thousanda) This Year Last Year Sales $96,000 $91,000 Cout of goods sold 60,500 $6,500 Gross margin 35,500 36,500 Selling and administrative expenses Selling expenses 10,200 9,700 Administrative expenses 13,700 12,700 Total selling and administrative expenses 23.900 22,400 Net operating incon 11,600 12,100 Interest expendte 900 Net Income before taxes 10.700 11,200 Income taxes 4,280 4.480 Net Income 6.420 5.720 Dividends to common stockholders 380 1776 Net income added to retained earning 6.032 5.946 lleginning retained earnings 28,360 22,416 finding retained earnings 334,392 $28,360 en Print frances Required: Compute the following financial data for this year. 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (le 0.1234 should be entered as 12.3)) 2. Net profit margin percentage (Round your percentage answer to 1 decimal place (ie, 0.1234 should be entered as 12.3)) 3. Return on total assets. (Round your percentage answer to 1 decimal place le. 0.1234 should be entered as 12,3).) 4. Return on equity (Round your percentage answer to 2 decimal places (1.6.01234 should be entered as 12.34)) 1. Gross margin percentage Chec 7 2.34 points 8 02:30:38 Book Hint 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 880,000 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 $22.00. All of the company's sales are on account Weller Corporation Comparative Balance sheet dollars in thousands This Year Last Year Assets Current asuta! Cash + 3,50 54.340 Mccounts receivable, et 15,200 10.150 Inventory 10,100 8,520 Prepaid expenses 1.800 2.260 Total current annet 30,689 25,270 Property and equipment Land 6,800 6.000 Buildings and equipment, net 20.000 19.800 Total property and equipment 26.800 26.600 Total Assets $51,870 Liabilities and Stockholders' Equity Current listesi Accounts payable $10,300 $8,700 Moored liabilities 760 1.100 Notes payable, short tern 380 Total current liabilities 11,440 10.180 Long-term liabilities honda payable 8.750 8.750 Total liabilities 20.190 19.930 stockholders' equity Common stock 800 880 Additional pald-in capital 4.600 4.600 Total paid in capital 5.400 5,400 Retained earning 31.10 22,460 Total stockholders equity 27290 32000 Total liabilities and stockholders' equity $57,43 351,00 Print References 7 2.14 points 8 02:30:26 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Tast Year Sales $87,000 $82,000 Cost of goods sold 56,000 52,000 Gross margin 31,000 30,000 Selling and administrative expenses Selling expenses 9,300 8,800 Administrative expenses 12,800 11,800 Total selling and administrative expenses 22,100 20,600 Net operating income 8,900 9,400 Interest expense 1.050 1,050 Net income before taxes 7,850 8,350 Income taxes 3,140 3,340 Net income 4,710 5,910 Dividends to common stockholders 352 704 Net income added to retained earnings 4,358 4,306 Beginning retained earnings 27,460 23,154 Ending retained earnings $31,818 $27.460 Book Hint Print References 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 2 decimal places.) 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 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-earings ratio 3. Dividend payout ratio 4. Dividend yield ratio % % Mc