Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below The company did not issue any new

image text in transcribedimage text in transcribed

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 930,000 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 $24.50. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet, (dollars in thousands) 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 This Year Last Year $ 4,038 $ 4,140 15,7001 10,400 10,350 8,720 1,930 2,360 32,018 25,620 7,300 7,300 20,500 20,300 27,800 $ 59,818. 27,600 $53,220 $10,800 868 430 12,098 $ 8,950 1,350 430 10,738 8,750 20,840 8,750 19,480 930 930 4,850 4,850 5,780 5,780 33,198 27,968 38,978 33,740 $59,818 $53,220 Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation. (dollars in thousands), Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Tetal selling and administrative expenses Net operating income This Year 5 92,000 58,500 33,500 Last Year $ 87,600 54,500 32,500 9,000 9,300 13,300 12,300 23,100 21,600 10,400 10,900 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation 4,850 4,850 5,780 5,780 33,198 38,978 $ 59,818 27,960 33,740 $ 53,220 Comparative Income Statement and Reconciliation (dollars in thousands) 09 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating incone Interest expense. Net income before taxes Income taxes Net income Dividends to common stockholders Net incone added to retained earnings. Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year. 1. Earnings per share. (Round your answer to 2 decimal places.) This Year $ 92,000 58,500 33,500 Last Year $ 87,000 54,500 32,500 9,800 9,300 13,300 12,300 23,100 21,600 10,400 10,900 1,050 1,050 9,350 9,850 3,740 3,940 5,616 5,910 372 744 5,238 27,960 $33,198 5,166 22,794 $27,960 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. Eamings per share i 2. Price-earnings ratio 3. Dividend payout ratio 4. Dividend yield ratio 5 Book value per share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools for business decision making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

6th Edition

978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895

More Books

Students also viewed these Accounting questions

Question

Being a responsible and prudent person means

Answered: 1 week ago