Check my work 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 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 $26. All of the company's sales are on account Meller Corporation Comparative Balance Sheet dollars in thousands) Assets This Year Last Year Current assets! Cash $ 3,302 $ 4,230 Accounts receivable, net 16,100 9. 100 Inventory 10.550 8,000 Prepaid expenses 1,970 2,440 Total current assets 31,922 Property and equipment: Land 7,700 7,700 Buildings and equipment, net 20,900 20,700 Totol property and equipment 28,600 28,400 Total assets 160,522 $53,050 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 11,200 $ 9,150 Accrued liabilities 948 1,550 Notes payable, short term 470 470 Total current liabilities 12,610 11,170 Long-term liabilities: Bonds payable 7.500 7,500 Total Liabilities 20, 110 18,670 Stockholders equity: Common stock 970 Additional paid-in capital 5,50 5,050 Total paid-in capital 8,020 6,02e Retained earnings 34,392 28,36 Total stockholders' equity 40, 412 34,380 Total liabilities and stockholders' equity $ 60,522 $ 53,050 970 Welter Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales This Year Last Year $ 96,00 $ 91,000 Cost of goods sold 60,500 56,500 Gross margin Selling and administrative expenses 35,500 34,500 Selling expenses 10,200 Administrative expenses 9,700 13,700 12,700 Total selling and administrative expenses 2,900 22,400 Net operating income 11,600 12.100 Interest expense 900 900 Net Incone before taxes 12,700 11,200 Income taxes 4,28 4,480 Net income 6,720 Dividends to connon stockholders 388 226 Net incone added to retained earnings 6,832 5,944 Beginning retained earnings 28,360 22,416 Ending retained earnings 5 34,392 528,360 Required: Compute the following financial data for this year 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (.e, 0.1234 should be entered as 12.3)) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place flie., 0.1234 should be entered as 12.3)) 3. Return on total assets. (Round your percentage answer to 1 decimal place fie., 0.1234 should be entered as 12.3).) 4. Return on equity (Round your percentage answer to 2 decimal places (.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 % 5
