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Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new
Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 870,000 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 the year was $21.50. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash 2,242 3,130 Accounts receivable, net 15,100 10.100 8,480 Inventory 0.050 1,870 2,240 Prepaid expenses Total current assets 29,262 23.950 Property and equipment: Land 6,700 6,700 Buildings and equipment, net 19,900 19,700 Total property and equipment 26,600 26,400 Total assets $55,862 $50,350 Liabilities and Stockholders' Equity Current liabilities: $10,200 8,650 Accounts payable 1,050 740 Accrued liabilities Notes payable, short term 370 370 Total current liabilities 11,310 10,070 Long-term liabilities Bonds payable 7,500 7,500 Total liabilities 18,810 17,570
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