Chapter #16 - Quiz i Saved Help Save 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 1,000,000 shares of common stock were outstanding. The 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 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $28. All of the company's sales are on account. Skipped Weller Corporation Comparative Balance Sheet (dollars in thousands ) This Year Last Year eBook Assets Current assets: Hint Cash $ 1, 300 $ 1, 610 Accounts receivable, net 16, 400 9 , 250 Inventory 10 , 700 9, 000 Prepaid expenses 2 , 000 2, 500 Total current assets 30, 400 22, 360 Property and equipment: Land 8 , 000 8 , 000 Buildings and equipment, net 21, 200 21, 000 Total property and equipment 29 , 200 29 , 000 Total assets $ 59, 600 $ 51, 360 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 11, 500 $ 9,300 Accrued liabilities 1, 000 1, 700 Notes payable, short term 500 500 Total current liabilities 13 , 000 11 , 500 Long-term liabilities : Bonds payable 5, 000 5,000 Total liabilities 18, 000 16, 500 Stockholders' equity: Common stock 1, 000 1, 000 Additional paid-in capital 5 , 200 5, 200 Total paid-in capital 6, 200 6, 200 Retained earnings 35 , 400 28 , 660 Total stockholders' equity 41, 600 34, 860 Total liabilities and stockholders' equity $ 59, 600 $ 51, 360 Mc Graw Hill MacBook AirChapter #16 - Quiz i Saved Weller Corporation 4 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 99, 000 $ 94 , 00 Cost of goods sold 62, 000 58 , 000 Gross margin 37, 000 36, 000 Skipped Selling and administrative expenses: Selling expenses 10,500 10, 000 Administrative expenses 14 , 000 13, 000 Total selling and administrative expenses 24 , 500 23, 000 eBook Net operating income 12, 500 13 , 000 Interest expense 600 600 Hint Net income before taxes 11, 900 12 , 400 Income taxes 4, 760 4,960 Net income 7, 140 7, 440 Dividends to common stockholders 400 800 Net income added to retained earnings 6, 740 6, 640 Beginning retained earnings 28 , 660 22 , 020 Ending retained earnings $ 35, 400 $ 28 , 660 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 % Mc Graw Hill MacBook AirChapter #16 - Quiz i Saved Help Save 5 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 920,000 shares of common stock were outstanding. The 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 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $24.00. All of the company's sales are on account. Skipped Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year eBook Assets Current assets: Hint Cash $ 2, 772 $ 2, 930 Accounts receivable, net 15 , 600 10 , 350 Inventory 10 , 300 8 , 680 Prepaid expenses 1, 920 2, 340 Total current assets 30 , 592 24, 300 Property and equipment: Land 7,200 7, 200 Buildings and equipment, net 20 , 400 20, 200 Total property and equipment 27 , 600 27 , 400 Total assets $ 58, 192 $ 51, 700 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 10 , 700 $ 8, 900 Accrued liabilities 840 1 , 300 Notes payable, short term 420 420 Total current liabilities 11 , 960 10 , 620 Long-term liabilities: Bonds payable 7, 500 7, 500 Total liabilities 19 , 460 8 , 120 Stockholders' equity: Common stock 920 920 Additional paid-in capital 4, 800 1, 800 Total paid-in capital 5 , 720 5 , 720 Retained earnings 33, 012 27 , 860 Total stockholders' equity 38, 732 33 , 580 Total liabilities and stockholders' equity $ 58, 192 $ 51, 700 Mc Graw Hill MacBook AirChapter #16 - Quiz i Saved Help Comparative Income Statement and Reconciliation (dollars in thousands) 5 This Year Last Year Sales $ 91 , 000 $ 86, 000 Cost of goods sold 58 , 000 54, 000 Gross margin 33, 000 32 , 000 Selling and administrative expenses: Selling expenses 9 , 700 9 , 200 Administrative expenses 13 , 200 12 , 200 Skipped Total selling and administrative expenses 22, 900 21 , 400 Net operating income 10 , 100 10 , 600 Interest expense 900 900 Net income before taxes 9 , 200 9, 700 eBook Income taxes 3, 680 3 , 880 Net income 5 , 520 5, 820 Hint Dividends to common stockholders 368 736 Net income added to retained earnings 5 , 152 5 , 084 Beginning retained earnings 27, 860 22, 776 Ending retained earnings $ 33, 012 $ 27 , 860 Required: Compute the following financial data for this year: 1. Earnings per share. (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 share. (Round your answer to 2 decimal places.) 1. Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio % 4. Dividend yield ratio % 5. Book value per share Mc Next > Graw