Chapter 13 Question 2

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 Buildings and equipment, net Total property and equipment Total assets Liabilities and Shareholders Equity Current liabilities: Accounts payable Accrued payables Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Year2 Year1 $ 1,290 $ 1,540 11,945 8,952 9,880 8,200 1,840 2,000 24,955 20,702 5,800 5,800 19,350 19,550 25,150 25,350 $ 50,105 $46,052 $ 9.400 $ 8.300 590 200 290 290 10,280 9,290 5,000 5,000 Total liabilities 15,280 Shareholders' equity: Preferred shares 1,800 Common shares 810 Additional paidin capital 2,790 Total paidin capital 5.400 Retained earnings 29,425 Total shareholders' equity 34,825 Total liabilities and shareholders\" equity $ 50,105 14, 290 1,800 810 2,790 5,400 26.362 31.762 $46052 WELLER CORPORATION Comparative Income Statement and Reconciliation {dollars in thousands) Year 2 Sales $ 79.100 Cost of goods sold 52,200 Gross margin 26,900 Operating expenses: Selling expenses 8,520 Administrative expenses 11,900 Total operating expenses 20,420 Year1 $73800 47,800 26,000 8,000 11,100 19,100 Net operating income 6,480 6,900 Interest expense 500 500 Net income before taxes 5,980 6,400 Less: Income taxes 2,392 2,560 Net income 3,588 3,840 Dividends to preferred shareholders 120 380 Net income remaining for common 3,468 3,460 shareholders Dividends to common shareholders 405 405 Net income added to retained 3,063 3055 earnings Retained earnings, beginning of year 26,362 23,307 Retained earnings, end of year $29,425 $26,362 Required: Compute the following nancial ratios for common shareholders for year 2 (Round your intermediate calculations to 2 decimal places. Round your per share answers to 2 decimal places and other answers to 1 decimal place}: 1. Gross margin percentage 2. Earnings per share of common shares 3. Price-earnings ratio 4. Dividend payout ratio 5. Dividend yield ratio 6. Return on total assets Return on common shareholders' equity 8. Book value per share