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 990,000 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 $28. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousand the Year Last Year 55,834 16,300 10,650 2.990 36774 $6,650 9.200 3,960 2,480 27,290 7,900 21,100 29.000 563.274 7.900 20,900 28.800 $56,090 Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current seta Property and equipment Land Buildings and equipment, bet Total property and equipment Total asset Liabilities and Stockholders' Equity Current liabities: Accounts payable Rocrued abilities Notes payable, short term Total current liabilities Long-term liabilities Donds payable Total Habilities Stockholdere equity Common stock Additional paid-in capital Total paid in capital Retained earning Total stockholdere equity Total liabilities and stockholdere equity $11,400 980 490 12,870 9.250 1.650 490 11,390 10.000 22,870 20.000 23.390 990 5.150 5.140 990 5.150 5.100 20.560 30,700 $56.090 40.904 $63,774 ed Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $98,000 $93,000 Cost of goods sold 61,500 57,500 Gross margin 36,500 35,500 Selling and administrative expenses i Selling expenses 10,400 9,900 Administrative expenses 13,900 12.900 Total selling and administrative expenses 24,300 22,800 Net operating income 12,200 12,200 Interest expense 1,200 1,200 Net income before taxes 11,000 11,500 Income taxes 4.400 4.500 Not income 6,600 6.900 Dividends to common stockholders 396 792 Not income added to retained ourninga 6,204 67108 Beginning retained camninga 28,560 22,452 Ending retained earningo $34, 764 028,560 OK nt 5 ances Required: Compute the following financial data for this year. 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 12.3).) 2. Not profit margin percentago. (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12.3). 3. Return on total assets. (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12.3).) 4. Return on equity, (Round your percentage answer to 2 decimal places (.e., 0.1234 should be entered as 12.34):) 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets 4. Return on equity Prey 8 of 9 Next >
