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 this year was $28. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,300 16,400 $ 1,610 9,250 10,700 9,000 2,000 2,500 30,400 22,360 8,000 8,000 21,200 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 29,200 $ 59,600 $ 11,500 1,000 500 21,000 29,000 $ 51,360 $ 9,300 1,700 500 13,000 11,500 5,000 5,000 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 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 Weller Corporation 5,000 5,000 18,000 16,500 1,000 1,000 5,200 5,200 6,200 6,200 35,400 28,660 41,600 34,860 $ 59,600 $ 51,360 Comparative Income Statement and Reconciliation Sales Cost of goods sold Gross margin (dollars in thousands) Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: This Year $ 99,000 Last Year $ 94,000 62,000 58,000 37,000 36,000 10,500 10,000 14,000 13,000 24,500 23,000 12,500 13,000 600 600 11,900 12,400 4,760 4,960 7,140 7,440 400 800 6,740 28,660 6,640 22,020 $ 35,400 $ 28,660 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 % do do do do % % % 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 870,000 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 $21.50. 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: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Total current liabilities Long-term liabilities: Bonds payable Total liabilities Notes payable, short term $ 2,242 15,100 10,050 $ 3,130 10,100 8,480 1,870 2,240 29,262 23,950 6,700 6,700 19,900 26,600 $ 55,862 $ 50,350 19,700 26,400 $ 10,200 740 $ 8,650 1,050 370 370 11,310 10,070 7,500 7,500 18,810 17,570 Stockholders' equity: Common stock 870 870 Additional paid-in capital 4,550 4,550 Total paid-in capital 5,420 5,420 Retained earnings 31,632 27,360 Total stockholders' equity 37,052 32,780 RULED payable, DEVELO 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 Sales Cost of goods sold. Gross margin 11,310 10,070 7,500 18,810 7,500 17,570 870 870 4,550 4,550 5,420 5,420 31,632 37,052 $ 55,862 27,360 32,780 $ 50,350 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income 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 $ 86,000 Last Year $ 81,000 51,500 55,500 30,500 29,500 9,200 8,700 12,700 11,700 21,900 8,600 20,400 9,100 900 900 7,700 8,200 3,080 3,280 4,620 4,920 348 696 4,272 27,360 $ 31,632 4,224 23,136 $ 27,360 Required: 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 % didi % Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year $ 76,985 Last Year $ 66,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 34,860 42,125 41,000 25,000 10,800 10,900 7,000 6,100 17,800 17,000 24,325 900 900 23,425 7,100 9,370 2,840 14,055 4,260 240 450 13,815 35,250 8,000 3,810 31,440 $ 49,065 $ 35,250 1. Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) 6. Total asset turnover. (Round your answer to 2 decimal places.) Required: Compute the following financial data for this year: 1. Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) 6. Total asset turnover. (Round your answer to 2 decimal places.) 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days days