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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
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 940,000 shares of common stock were outstanding. The Interest rate on the bond payable was 12%, the income tax rate was 40%. 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 $25.00. 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 Total current assets Property and equipment: $ 5,304 15,800 $ 5,350 10,450 10,400 8,760 1,940 2,380 33,444 26,940 Land 7,400 7,400 Buildings and equipment, net 20,600 20,400 Total property and equipment 28,000 27,800 Total assets $61,444 $54,740 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $10,900 $ 9,000 Accrued liabilities 880 1,400 Notes payable, short term 440 440 Total current liabilities 12,220 10,840 Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital 10,000 10,000 22,220 20,840 940 940 4,900 4,900 Total paid-in capital 5,840 5,840 Retained earnings 33,384 28,060 Total stockholders' equity 39,224 33,900 Total liabilities and stockholders' equity $61,444 $54,740 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $93,000 $88,000 Cost of goods sold 59,000 55,000 Gross margin 34,000 33,000 Selling and administrative expenses: Selling expenses 9,900 9,400 Administrative expenses 13,400 12,400 Total selling and administrative expenses 23,300 21,800 Net operating income 10,700 11,200 Interest expense 1,200 1,200 Net income before taxes 9,500 10,000 Income taxes 3,800 4,000 Net income 5,700 6,000 Dividends to common stockholders 376 752 Net income added to retained earnings 5,324 5,248 Beginning retained earnings 28,060 22,812 Ending retained earnings $33,384 $28,060 Required: Compute the following financial data for this year: Hint-The dollar amounts reported on the financial statements are "in thousands" but the number of shares outstanding included in the "given" information is the actual amount. A consistent measurement must be used in the numerator and the denominator. When calculating EPS, add three zeros to the net income amount in the numerator then divide by the number of shares outstanding OR remove the last three zeros in the number of shares outstanding and divide that into the net income reported on the financial statement. 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.) 1. Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio % 4. Dividend yield ratio %
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