Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounting Two HW due soon! pls help! thx Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below.

Accounting Two HW due soon! pls help! thx
image text in transcribed
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 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. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assetar Cash $ 4,230 $ 3,302 16,100 9,100 Accounts receivable, net Inventory 10,550 8,000 Prepaid expenses 1,970 2,440 Total current assets 31,922 24,650 Property and equipment: Land 7,700 7,700 20,900 20,700 Buildings and equipment, net Total property and equipment 20,600 29,400 Total assets $ 60,522 $53,050 Liabilities and Stockholders' Equity Current liabilitions Accounts payable $11,200 $9,150 Accrued liabilition 940 1,550 470 470 Notes payable, short term Total current liabilities Long-term liabilities: 12,610 11,170 Donds payable 7,500 7,500 20,110 Total liabilities. Stockholders' equity 18,670 Common stock 970 970 Additional paid-in capital 5,050 5,050 Total paid-in capital 6,020 6,020 Retained earnings 34,392 29,360 Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sales. Cost of goods sold Gross margin Selling and administrative expenses. Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings. Ending retained earnings. 970 5,050 6,020 34,392 40,412 $ 60,522 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year $ 96,000 60,500 35,500 10,200 13,700 23,900 11,600 900 10,700 4,200 6,420 388 6,032 28,360 $ 34,392 4 970 5,050 6,020 28,360 34,380 $ 53,050 Last Year $ 91,000 56,500 34,500 9,700 12,700 22,400 12,100 900 11,200. 4,480 6,720 776 5,944 22,416 $28,360 Required: Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 12.3).) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 4. Return on equity. (Round your percentage answer to 2 decimal places (l.e., 0.1234 should be entered as 12.34).) 1. Gross margin percentage % 2. Net profit margin percentage % 3. Return on total assets % 4. Return on equity %

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

Recommended Textbook for

Costing

Authors: Terry Lucey

6th Edition

0826455107, 9780826455109

More Books

Students also viewed these Accounting questions

Question

=+How is CSR different from strategic CSR?

Answered: 1 week ago