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 990,000 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 company's common stock at the end of the year was $28. All of the company's sales are on account.

Weller Corporation

Comparative Balance Sheet

(dollars in thousands)This YearLast YearAssetsCurrent assets:Cash$5,834$6,650Accounts receivable, net16,3009,200Inventory10,6508,960Prepaid expenses1,9902,480Total current assets34,77427,290Property and equipment:Land7,9007,900Buildings and equipment, net21,10020,900Total property and equipment29,00028,800Total assets$63,774$56,090Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable$11,400$9,250Accrued liabilities9801,650Notes payable, short term490490Total current liabilities12,87011,390Long-term liabilities:Bonds payable10,00010,000Total liabilities22,87021,390Stockholders' equity:Common stock990990Additional paid-in capital5,1505,150Total paid-in capital6,1406,140Retained earnings34,76428,560Total stockholders' equity40,90434,700Total liabilities and stockholders' equity$63,774$56,090

Weller Corporation

Comparative Income Statement and Reconciliation

(dollars in thousands)This YearLast YearSales$98,000$93,000Cost of goods sold61,50057,500Gross margin36,50035,500Selling and administrative expenses:Selling expenses10,4009,900Administrative expenses13,90012,900Total selling and administrative expenses24,30022,800Net operating income12,20012,700Interest expense1,2001,200Net income before taxes11,00011,500Income taxes4,4004,600Net income6,6006,900Dividends to common stockholders396792Net income added to retained earnings6,2046,108Beginning retained earnings28,56022,452Ending retained earnings$34,764$28,560

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).)