Question
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new
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 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, 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. 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 $1,120 $ 1,370 9,900 13,000 670 7,700 12,300 510 24,690 21,880 Property and equipment: Land: 9,700 9,700 Buildings and equipment, net 45,002 39,796 Total property and equipment 54,702 49,496 Total assets $79,392 $71,376 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $19,300 $19,300 Accrued liabilities 1,060 780 Notes payable, short term 198 Total current liabilities. Long-term liabilities: Bonds payable Total Liabilities Stockholders' equity: Common stock 20,360 20,270 8,900 8,900 29,260 29,170 2,000 2,000 Additional paid-in capital 4,000 4,000 Total paid-in capital 6,000 6,000 Retained earnings 44,132 36,206 Total stockholders' equity 50,132 42,206 Total liabilities and stockholders' equity $79,392 $71,376
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started