Chapter 15

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 (i.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 (i.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		%

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear be The company did not issue any new common stock during the year. A total of 970.000 shares of common stock were outstandin 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 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 are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 3,302 16, 1899 .180 10,55 8,880 1,970 2.440 31,922 24,650 7,789 29,900 28,680 $68,522 7,780 20. zee 28,480 $53.950 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' equity $11,280 940 470 12,610 $ 9,150 1.550 470 11,170 7,580 29, 110 7,580 18,670 970 5, e5e 6.920 34,392 48,412 $60,522 970 5,950 6,020 28, 360 34,380 $53,50 Last Year $91,080 56,500 34,580 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $96, eee Cost of goods sold 60,580 Gross margin 35,580 Selling and administrative expenses: Selling expenses 1e, 280 Administrative expenses 13,700 Total selling and administrative expenses 23,980 Net operating income Interest expense Net income before taxes Income taxes 4,280 Net income 6.420 Dividends to common stockholders 388 Net income added to retained earnings 6,832 Beginning retained earnings 28, 360 Ending retained earnings $34.392 9,789 12,780 22,480 12,180 900 11,200 4,480 6.720 10,78 776 5.944 22,416 $28, 360