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 840,000 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 companys common stock at the end of this year was $20. All of the companys sales are on account.

Weller Corporation

Comparative Balance Sheet

(dollars in thousands)

This Year Last Year

Assets

Current assets:

Cash $ 6,344 $ 6,400

Accounts receivable, net 12,700 9,300

Inventory 9,900 8,360

Prepaid expenses 1,840 2,180

Total current assets 30,784 26,240

Property and equipment:

Land 6,400 6,400

Buildings and equipment, net 19,600 19,400

Total property and equipment 26,000 25,800

Total assets $ 56,784 $ 52,040

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ 9,900 $ 8,500

Accrued liabilities 680 900

Notes payable, short term 340 340

Total current liabilities 10,920 9,740

Long-term liabilities:

Bonds payable 10,000 10,000

Total liabilities 20,920 19,740

Stockholders' equity:

Common stock 840 840

Additional paid-in capital 4,400 4,400

Total paid-in capital 5,240 5,240

Retained earnings 30,624 27,060

Total stockholders' equity 35,864 32,300

Total liabilities and stockholders' equity $ 56,784 $ 52,040

Weller Corporation

Comparative Income Statement and Reconciliation

(dollars in thousands)

This Year Last Year

Sales $ 83,000 $ 78,000

Cost of goods sold 54,000 50,000

Gross margin 29,000 28,000

Selling and administrative expenses:

Selling expenses 8,900 8,400

Administrative expenses 12,400 11,400

Total selling and administrative expenses 21,300 19,800

Net operating income 7,700 8,200

Interest expense 1,200 1,200

Net income before taxes 6,500 7,000

Income taxes 2,600 2,800

Net income 3,900 4,200

Dividends to common stockholders 336 672

Net income added to retained earnings 3,564 3,528

Beginning retained earnings 27,060 23,532

Ending retained earnings $ 30,624 $ 27,060

Required:

Compute the following financial data for this year:

1. Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 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).)