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 950,000 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. weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 770 1,810 9,000 8,800 2,400 Cash Accounts receivable, net Inventory Prepaid expenses 10,450 1,950 29,070 Total current assets Property and equipment: 552079 22,01 Land 7,500 20, 500 28,000 $57,270 $50,010 7,500 20,700 28,200 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: $11,0009,050 Accounts payable Accrued liabilities Notes payable, short term 900 450 450 10,950 Total current 1iabilities Long-term liabilities: Bonds payable 5,000 15,950 7,350 Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 4,950 5,900 34,020 39,920 4,950 5,900 28,160 34,060 $57,270 $50,010 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: $94,000 59,500 34,500 $89,000 55, 500 33, 500 Selling expenses Administrative expenses 10,000 13, 500 23, 500 12, 500 22,000 Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 11,500 600 10.400 10,900 4,360 6,540 760 5,780 22, 380 $34,020 $28,160 11,000 600 4,160 6,240 380 5,860 28,160 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.., 0.1234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 01234 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
