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 $28. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Yea $ 1,250 10,000 12,500 780 24,530 $ 1,250 6,700 12,300 500 20,750 9,300 43, 144 52,444 $76,974 9,300 39,832 48,332 $69,082 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment 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 $18,600 1,010 $18,000 790 180 18.970 19,610 8,800 28,410 8,800 27,770 2,000 4,000 6,000 42,564 48,564 2,000 4,000 6,000 35, 312 41.312 Total abia and taclobodan $76 074 $69 082 9,300 43, 144 52,444 $76,974 9,300 39,032 48,332 $69,082 $18,600 1,010 Land Buildings and equipment, net Total property and equipment 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 $18,000 790 180 18,970 19,610 8,800 28,410 8,800 27,770 2,000 4,000 6,000 42,564 48,564 $76,974 2,000 4,000 6,000 35,312 41,312 $69,082 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Yea Sales $71,000 $64,000 Cost of goods sold 40,000 39,000 Gross margin 31,000 25,000 Selling and administrative expenses: Selling expenses 10,900 10,100 Administrative expenses 6,800 6,400 Total selling and administrative expenses 17,700 16,500 Net operating income 13,300 8,500 Interest expense 880 880 Net income before taxes 12,420 7,620 Income taxes 4,968 3,048 Net income 7,452 4,572 Dividends to common stockholders 200 500 Net income added to retained earnings 7,252 4,072 Beginning retained earnings 35,312 31,240 Ending retained earnings $42,564 $35,312 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.) Times interest earned ratio Debt-to-equity ratio Equity multiplier 3. Ea 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).) 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets 4. Return on equity 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
