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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
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 500,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, 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 $20. All of the company's sales are on account. Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. (For all requirements, round your answers to 2 decimal places.) 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 \begin{tabular}{l} $81,636$72,888 \\ \hline \hline \end{tabular} \begin{tabular}{rr} $20,400 & $18,200 \\ 960 & 890 \\ 0 & 210 \\ \hline 21,360 & 19,300 \end{tabular} \begin{tabular}{rr} 8,200 & 8,200 \\ \hline 29,560 & 27,500 \\ \hline & \\ 2,000 & 2,000 \\ 4,000 & 4,000 \\ \hline 6,000 & 6,000 \\ 46,076 & 39,388 \\ \hline 52,076 & 45,388 \\ \hline$81,636 & $72,888 \\ \hline \hline \end{tabular}
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