Answered step by step
Verified Expert Solution
Question
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
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 990,000 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 $27.50. All of the company's sales are on account. 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 This Year Last Year $ 5,834 $ 6,650 16,300 9,200 10,650 8,960 1,990 2,480 34,774 27,290 7,900 7,900 Total property and equipment Total assets Current liabilities: Accounts payable Liabilities and Stockholders' Equity 21,100 29,000 $ 63,774 20,900 28,800 $ 56,090 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 $ 11,400 980 $ 9,250 1,650 490 490 12,870 11,390 10,000 10,000 22,870 21,390 990 990 5,150 5,150 6,140 6,140 34,764 28,560 40,904 34,700 $ 63,774 $ 56,090 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses 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 Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) This Year $ 98,000 61,500 36,500 Last Year $ 93,000 57,500 35,500 10,400 9,900 13,900 12,900 24,300 22,800 12,200 12,700 1,200 1,200 11,000 11,500 4,400 4,600 6,600 396 6,900 792 6,204 28,560 6,108 22,452 $ 34,764 $ 28,560 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started