Question
Ch Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any
Ch 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 company's common stock at the end of this year was $23. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land This Year Last Year $ 1,260 9,100 13,400 610 $ 1,350 7,300 11,500 610 24,370 20,760 10,300 10,300 Buildings and equipment, net 47,064 43,182 Total property and equipment 57,364 53,482 Total assets $81,734 $74,242 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $19,700 $19,300 Accrued liabilities. 1,080. 720 Notes payable, short term 290 290 Total current liabilities 21,070 20,310 Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock 9,800 30,870 9,800 30,110 600 600
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