Chapter 14 Graded Homework 4 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 wes $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 $27. All of the company's sales are on account. 2.5 points Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year ebook $ 1,200 10,400 13.00 650 25,250 $ 1,250 8,000 11,800 56e 21,612 Hint 9.200 45,658 54,858 $ , 108 9.200 36,244 45,444 Pre $ 67,054 References 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 Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilitics Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 18,790 $ 19, 200 950 710 210 19,860 210 20.12e 8, 10e 27,950 8,120 28, 220 bae 4, ee 4,60e 47,548 52,148 $ 80, 108 4,000 4,600 34, 234 38,834 $ 67,054 Last Year $ 64,628 39.Be 25 eze Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 78,220 Cost of goods sold 37,200 Gross margin 41, ese Selling and administrative expenses: Selling expenses 10,500 Administrative expenses 7,120 Total selling and administrative expenses 17,600 Net operating income 23, 4ee Interest expense sie Net income before taxes 22,590 Income taxes 9,036 Net income 13,554 Dividends to common stockholders 240 Net income added to retained carnings 13,314 Beginning retained carnings 34,234 Ending retained carnings $ 47,548 12,420 6,800 17,280 7,82e 81e 6,990 2,796 Gee 3,594 38,648 Required: Compute the following financial data for this year: 1. Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) 2. Average collection period. (Use 365 days in a year. Round your Intermediate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) 4. Average sole period. (Use 365 days in a year. Round your Intermediate calculations and final answer to 2 decimal places.) 5. Operating cycle. (Round your Intermediate calculations and final answer to 2 decimal places.) 6. Total asset turnover. (Round your answer to 2 decimal places.) days 1. Accounts receivable tumover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle days days 6. Talal assalturnover 5 Comparative financial statements for Weller Corporation, merchandising company, for the year ending December 31 eppes 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 1296, 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. 25 points Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 3,302 16,100 1e,sse 1,970 31,922 $ 4,230 9.100 8,888 2,440 24,650 7,702 28,900 28,523 $ 60,522 7,702 20,700 28,40e $ 53,ese Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipnent: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 11,200 940 47a 12,610 $ 9, 15e 1.55 47e 11,170 7.500 18,670 7.500 ze, 110 978 5,ese 978 5.ee 6,020 34,392 48,412 $ 68,522 28, 360 34, 382 $ 53,950 Last Year $ 91,200 56.500 34,5ae Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 95,000 Cost of goods sold 68,500 Gross margin 35,500 Selling and administrative expenses: Selling expenses 18,200 Administrative expenses 13.700 Total selling and administrative expenses 23,9ee Net operating income 11,600 Interest expense gee Net incone before taxes 18,700 Income taxes 4,280 Net income 6.420 Dividends to common stockholders 388 Net income added to retained carnings 6,832 Beginning retained carnings 28.362 Ending retained earnings $ 34,392 9.700 12.200 22,40e 12,120 see 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 (I.e., 0.1234 should be entered as 12.3).) 2. Net profit margin percentage (Round your percentage answer to 1 decimal place (1.e., 0.1234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 12.3).) 4. Return on equity. (Round your percentage answer to 2 decimal places (le. 0.1234 should be entered as 12.34).) Answer is complete but not entirely correct. 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets 4. Return on equity 37.0 % 6.7% 11.3% 17.17% 6 Exercise 14-6 (Algo) Financial Ratios for Assessing Market Performance [LO14-6] 2.5 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 850,000 shares of common stock were outstanding. The interest rate on the bond payable wes 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 wes $20.50. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,810 12,880 9.95e 1,85e 26.410 $ 710 12.ee 8.400 2,200 21 310 6, See 19.780 26, 200 $ 52,61e 5.500 19.500 26.se $ 47,310 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 Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' cquity $ 10, ese 7ee 35e 11.ose $8.552 950 35e 9,850 5,828 16, ese 5.ee 14.849 85e 4,450 5,388 31, 260 36,560 $ 52,610 ese 4,450 5.300 27. 160 32,460 $ 47,310 Last Year $ 79,00 50, 500 28.500 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 84,000 Cost of goods sold 54, see Gross margin 29,500 Selling and administrative expenses: Selling expenses 9. eee Administrative expenses 12.5ee Total selling and administrative expenses 21. See Net operating income 8,220 Interest expense Net income before taxes 7.480 Income taxes 2,96e Net income 4,440 Dividends to common stockholders 340 Net income added to retained earnings 4,100 Beginning retained carnings 27 Ending retained earnings $ 31,260 8.500 11.500 2eeee 8.500 600 7.9ee 3,16e 4,740 4,05 23,10 $ 27.160 Required: Compute the following financial data for this year: 1 1. Esmings per shore. (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 Intermediate calculations and final answer to 2 decimal places.) 5. Book value per shore. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. 1. Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio 4. Dividend yield ratio 5. Book value per share S 5.22 7.66 x 1.95% 3.93 % S43.01 Chapter 14 Graded Homework 4 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 wes $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 $27. All of the company's sales are on account. 2.5 points Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year ebook $ 1,200 10,400 13.00 650 25,250 $ 1,250 8,000 11,800 56e 21,612 Hint 9.200 45,658 54,858 $ , 108 9.200 36,244 45,444 Pre $ 67,054 References 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 Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilitics Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 18,790 $ 19, 200 950 710 210 19,860 210 20.12e 8, 10e 27,950 8,120 28, 220 bae 4, ee 4,60e 47,548 52,148 $ 80, 108 4,000 4,600 34, 234 38,834 $ 67,054 Last Year $ 64,628 39.Be 25 eze Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 78,220 Cost of goods sold 37,200 Gross margin 41, ese Selling and administrative expenses: Selling expenses 10,500 Administrative expenses 7,120 Total selling and administrative expenses 17,600 Net operating income 23, 4ee Interest expense sie Net income before taxes 22,590 Income taxes 9,036 Net income 13,554 Dividends to common stockholders 240 Net income added to retained carnings 13,314 Beginning retained carnings 34,234 Ending retained carnings $ 47,548 12,420 6,800 17,280 7,82e 81e 6,990 2,796 Gee 3,594 38,648 Required: Compute the following financial data for this year: 1. Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) 2. Average collection period. (Use 365 days in a year. Round your Intermediate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) 4. Average sole period. (Use 365 days in a year. Round your Intermediate calculations and final answer to 2 decimal places.) 5. Operating cycle. (Round your Intermediate calculations and final answer to 2 decimal places.) 6. Total asset turnover. (Round your answer to 2 decimal places.) days 1. Accounts receivable tumover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle days days 6. Talal assalturnover 5 Comparative financial statements for Weller Corporation, merchandising company, for the year ending December 31 eppes 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 1296, 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. 25 points Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 3,302 16,100 1e,sse 1,970 31,922 $ 4,230 9.100 8,888 2,440 24,650 7,702 28,900 28,523 $ 60,522 7,702 20,700 28,40e $ 53,ese Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipnent: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 11,200 940 47a 12,610 $ 9, 15e 1.55 47e 11,170 7.500 18,670 7.500 ze, 110 978 5,ese 978 5.ee 6,020 34,392 48,412 $ 68,522 28, 360 34, 382 $ 53,950 Last Year $ 91,200 56.500 34,5ae Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 95,000 Cost of goods sold 68,500 Gross margin 35,500 Selling and administrative expenses: Selling expenses 18,200 Administrative expenses 13.700 Total selling and administrative expenses 23,9ee Net operating income 11,600 Interest expense gee Net incone before taxes 18,700 Income taxes 4,280 Net income 6.420 Dividends to common stockholders 388 Net income added to retained carnings 6,832 Beginning retained carnings 28.362 Ending retained earnings $ 34,392 9.700 12.200 22,40e 12,120 see 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 (I.e., 0.1234 should be entered as 12.3).) 2. Net profit margin percentage (Round your percentage answer to 1 decimal place (1.e., 0.1234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 12.3).) 4. Return on equity. (Round your percentage answer to 2 decimal places (le. 0.1234 should be entered as 12.34).) Answer is complete but not entirely correct. 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets 4. Return on equity 37.0 % 6.7% 11.3% 17.17% 6 Exercise 14-6 (Algo) Financial Ratios for Assessing Market Performance [LO14-6] 2.5 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 850,000 shares of common stock were outstanding. The interest rate on the bond payable wes 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 wes $20.50. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,810 12,880 9.95e 1,85e 26.410 $ 710 12.ee 8.400 2,200 21 310 6, See 19.780 26, 200 $ 52,61e 5.500 19.500 26.se $ 47,310 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 Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' cquity $ 10, ese 7ee 35e 11.ose $8.552 950 35e 9,850 5,828 16, ese 5.ee 14.849 85e 4,450 5,388 31, 260 36,560 $ 52,610 ese 4,450 5.300 27. 160 32,460 $ 47,310 Last Year $ 79,00 50, 500 28.500 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 84,000 Cost of goods sold 54, see Gross margin 29,500 Selling and administrative expenses: Selling expenses 9. eee Administrative expenses 12.5ee Total selling and administrative expenses 21. See Net operating income 8,220 Interest expense Net income before taxes 7.480 Income taxes 2,96e Net income 4,440 Dividends to common stockholders 340 Net income added to retained earnings 4,100 Beginning retained carnings 27 Ending retained earnings $ 31,260 8.500 11.500 2eeee 8.500 600 7.9ee 3,16e 4,740 4,05 23,10 $ 27.160 Required: Compute the following financial data for this year: 1 1. Esmings per shore. (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 Intermediate calculations and final answer to 2 decimal places.) 5. Book value per shore. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. 1. Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio 4. Dividend yield ratio 5. Book value per share S 5.22 7.66 x 1.95% 3.93 % S43.01