Question
CAN SOMEONE CHECK IT FOR ME PLEASE Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The
CAN SOMEONE CHECK IT FOR ME PLEASE
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 companys common stock at the end of this year was $30. All of the companys sales are on account.
Weller Corporation Comparative Balance Sheet (dollars in thousands) | ||||||
This Year | Last Year | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 1,090 | $ | 1,410 | ||
Accounts receivable, net | 9,000 | 6,900 | ||||
Inventory | 13,500 | 11,500 | ||||
Prepaid expenses | 600 | 570 | ||||
Total current assets | 24,190 | 20,380 | ||||
Property and equipment: | ||||||
Land | 9,700 | 9,700 | ||||
Buildings and equipment, net | 45,506 | 43,178 | ||||
Total property and equipment | 55,206 | 52,878 | ||||
Total assets | $ | 79,396 | $ | 73,258 | ||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 19,700 | $ | 18,900 | ||
Accrued liabilities | 1,020 | 840 | ||||
Notes payable, short term | 0 | 290 | ||||
Total current liabilities | 20,720 | 20,030 | ||||
Long-term liabilities: | ||||||
Bonds payable | 8,200 | 8,200 | ||||
Total liabilities | 28,920 | 28,230 | ||||
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 | 44,476 | 39,028 | ||||
Total stockholders' equity | 50,476 | 45,028 | ||||
Total liabilities and stockholders' equity | $ | 79,396 | $ | 73,258 | ||
Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) | ||||||
This Year | Last Year | |||||
Sales | $ | 71,000 | $ | 65,000 | ||
Cost of goods sold | 43,000 | 34,000 | ||||
Gross margin | 28,000 | 31,000 | ||||
Selling and administrative expenses: | ||||||
Selling expenses | 11,300 | 10,600 | ||||
Administrative expenses | 6,400 | 6,100 | ||||
Total selling and administrative expenses | 17,700 | 16,700 | ||||
Net operating income | 10,300 | 14,300 | ||||
Interest expense | 820 | 820 | ||||
Net income before taxes | 9,480 | 13,480 | ||||
Income taxes | 3,792 | 5,392 | ||||
Net income | 5,688 | 8,088 | ||||
Dividends to common stockholders | 240 | 300 | ||||
Net income added to retained earnings | 5,448 | 7,788 | ||||
Beginning retained earnings | 39,028 | 31,240 | ||||
Ending retained earnings | $ | 44,476 | $ | 39,028 | ||
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.)
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