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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 common

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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 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 (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,300 $ 1,610 Accounts receivable, net 16,400 9,250 Inventory 10,700 9,000 Prepaid expenses 2,000 2,500 Total current assets 30,400 22,360 Property and equipment: Land 8,000 8,000 Buildings and equipment, net 21,200 21,000 Total property and equipment 29, 200 29,000 Total assets $59,600 $51,360 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $11,500 $ 9,300 Accrued liabilities 1,000 1,700 Notes payable, short term 500 500 Total current liabilities 13,000 11,500 Long-term liabilities: Bonds payable 5,000 5,000 Total liabilities 18,000 16,500 Stockholders' equity: Common stock 1,000 1,000 Additional paid-in capital 5,200 5,200 Total paid-in capital 6,200 6,200 Retained earnings 35,400 28,660 Total stockholders' equity 41,600 34,860 Total liabilities and stockholders' equity $59,600 $51,360 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $99,000 $94,000 Cost of goods sold 62,000 58,000 Gross margin 37,000 36,000 Selling and administrative expenses: Selling expenses 10,500 10,000 Administrative expenses 14,000 13,000 Total selling and administrative expenses 24,500 23,000 Net operating income 12,500 13,000 Interest expense 600 600 Net income before taxes 11,900 12,400 Income taxes 4,760 4,960 Net income 7,140 7,440 Dividends to common stockholders 400 800 Net income added to retained earnings 6,740 6,640 Beginning retained earnings 28,660 22,020 Ending retained earnings $35,400 $28,660 W 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 os 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 % %

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