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 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 $26.50. 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 3,302 4,230 9,100 8,880 2,440 Accounts receivable, net Inventory Prepaid expenses 16,100 10,550 1,970 Total current assets 31,922 24,650 Property and equipment 7,700 20,700 28,400 Land 7,700 Buildings and equipment, net Total property and equipment 20,900 28,600 $60,522 $53,050 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities $11,200 $9,150 940 1,550 Notes payable, short term Total current liabilities Long-term liabilities Bonds payable 470 470 12,610 11,170 7,500 7,500 Total liabilities 18,670 20,110 Stockholders' equity: Common stock 970 970 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 5,050 5,050 6,020 34,392 6,020 28,360 34,380 40,412 $60,522 $53,050 Total liabilities and stockholders' equity 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: Selling expenses Administrative expenses $96,000 $91,000 60,500 35,500 56,500 34,500 10,200 13,700 9,700 12,700 Total selling and administrative expenses Net operating income Interest expense 23,900 22,400 11,600 12,100 900 900 Net income before taxes 11,200 4,480 6,720 10,700 4,280 6,420 Income taxes Net income Dividends to common stockholders 388 776 Net income added to retained earnings Beginning retained earnings 6,032 28,360 5,944 22,416 $34,392 $28,360 Ending retained earnings 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.) 1. Earnings per share |2. Price-earnings ratio 3. Dividend payout ratio 4 Dividend yield ratio 5. Book value per share %
