Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribedimage text in transcribed

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 $28.00. All of the company's sales are on account. This Year Last Year $ 1,300 16,40e 10,780 2.ee 30,480 $ 1,610 9,250 9, eee 2,500 22, 360 8,888 21,200 29,280 $ 59,680 8, eee 21,080 29,000 $ 51,360 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 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 $ 11,500 1,000 500 13,ese $ 9,300 1,700 580 11,580 5,000 18,000 5, eee 16,500 1,690 5,200 6,200 35,40e 41,600 $ 59,600 1,eee 5, 2ee 6,280 28,660 34,860 $ 51,360 Last Year $ 94,800 58,000 36,000 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 99,080 Cost of goods sold 62,80 Gross margin 37,000 Selling and administrative expenses: Selling expenses 10,500 Administrative expenses 14.ae Total selling and administrative expenses 24,500 Net operating income 12,500 Interest expense 680 Net income before taxes 11,990 Income taxes 4,760 Net income 7,140 Dividends to common stockholders 400 Net income added to retained earnings 6,74e Beginning retained earnings 28,660 Ending retained earnings $ 35,400 10,000 13, eee 23,00 13,000 12,400 4,960 7,440 800 6,640 22,92e $ 28,660 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.) $ 6.47 1. Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio 4. Dividend yield ratio 5. Book value per share %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions