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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
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 910,000 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 $23.50. 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: $ 1,506 15,500 $ 1,720 10,300 10,250 8,640 1,910 2,320 29,166 22,980 Land 7,100 7,100 Buildings and equipment, net 20,300 20,100 Total property and equipment 27,400 27,200 Total assets $56,566 $50,180 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $10,600 $ 8,850 Accrued liabilities. 820 1,250 Notes payable, short term 410 410 Total current liabilities. 11,830 10,510 Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: 6,250 6,250 18,080 16,760 Common stock 910 910 Additional paid-in capital 4,750 4,750 OLOCAICOS Common stock equity! Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 910 910 4,750 4,750 5,660 5,660 32,826 27,760 38,486 33,420 Total liabilities and stockholders' equity $56,566 $50,180 Sales Weller Corporation Comparative Income Statement and Reconciliation 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 This Year Last Year $90,000 $85,000 57,500 53,500 32,500 31,500 9,600 9,100 13,100 12,100 22,700 21,200 9,800 10,300 750 750 9,050 9,550 3,620 3,820 5,430 5,730 364 5,066 728 5,002 27,760 22,758 $32,826 $27,760 Required: Compute the following financial data for this year: 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 $ 5.97 3. Dividend payout ratio 6.70 % 4. Dividend yield ratio 5. Book value per share $ 42.29
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