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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 860,000 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. All of the company's sales are on account. \fWeller Corporation Comparative Income Statement and Reconciliation (dollars in thousands] This Year Sales $85,333 Cost of goods sold 55,333 Gross margin 33,333 Selling and administrative expenses: Selling expenses 9,133 dministrative expenses 12,633 Total selling and administrative expenses 21,793 Net operating income 8,333 Interest expense 753 Net income before taxes 7,553 Income taxes 3,323 Net income 4,533 Dividends to common stockholders 344 Net income added to retained earnings 4,186 Beginning retained earnings 27,263 Ending retained earnings $31,446 Last Year $83,333 51,333 29,999 8,633 11,899 29,299 8,899 259 8,959 3,229 4,839 888 4,142 23,118 $22,299 Compute the following nancial data for this year: 1. Gross margin percentage. (Round your percentage answer to1 decimal place (i.e., 0.1234 should be entered as 12.3).) 2. Net prot margin percentage. (Round your percentage answer to1 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).)
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