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 1,000,000 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 $28 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 Accounts receivable, net Inventory Prepaid expenses $1,3001,610 9,250 9, 000 2,500 50400 22, 360 16,400 10,700 2,000 30,400 Total current assets Property and equipment: 8,000 8,000 Land 21:20021,000 29,000 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: 29,200 $59,600 $51,360 $11,500 9,300 1,700 500 11,500 Accounts payable Accrued liabilities 1,000 500 Notes payable, short term Total current liabilities Long-term liabilities: 13,000 5,000 16,500 Bonds payable Total liabilities 18,000 Stockholders' eguity Common stock 1,000 5,200 6,200 35.40028,660 34,860 $51,360 1,000 5,200 6,200 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 20 1,600 $59,600 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) 1 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: $99,000 94,000 62,000 37,000 58,000 0036,000 Selling expenses 10,000 14.000 13,000 00 23,000 10,500 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 24,500 12 500 600 11,900 4,760 7,140 400 6,740 28,660 13,000 600 12,400 4,960 ,440 800 6,640 22,020 $35,400 $28,660 Required Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 01234 should be entered as 12.3).) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 3, Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 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).) Gross margin percentage 2. Net profit margin percentage 3. Return on total assets 4. Return on equity
