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 bonds, which were sold at their face value, was 12%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the companys common stock at the end of the year was $25. All of the companys sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands)

This Year Last Year Assets Current assets:

Cash $ 5,304 $ 5,350

Accounts receivable, net 15,800 10,450

Inventory 10,400 8,760

Prepaid expenses 1,940 2,380

Total current assets 33,444 26,940

Property and equipment:

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 10,000 10,000

Total liabilities 22,220 20,840

Stockholders' equity:

Common stock 940 940

Additional paid-in capital 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 376 376

Net income added to retained earnings 5,324 5,624

Beginning retained earnings 28,060 22,436

Ending retained earnings $ 33,384 $ 28,060

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).)