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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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. 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 $29. All of the company's sales are on account.

Compute the following financial ratios for this year:

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Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,280 $ 1,340 Accounts receivable, net 10,600 6,700 Inventory 13,400 11,400 Prepaid expenses 640 580 Total current assets 25,920 20,020 Property and equipment: Land 10,400 10,400 Buildings and equipment, net 41,863 39,659 Total property and equipment 52,263 50,059 Total assets $78,183 $70,079 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $19,900 $ 19, 100 Accrued liabilities 1,010 850 Notes payable, short term 0 150 Total current liabilities 20,910 20, 100 Long-term liabilities: Bonds payable 9,100 9,100 Total liabilities 30,010 29,200 Stockholders' equity: Common stock 2,000 2,000 Additional paid-in capital 4,000 4,000 Total paid-in capital 6,000 6,000 Retained earnings 42,173 34,879 Total stockholders' equity 48,173 40,879 Total liabilities and stockholders' equity $78,183 $70,079Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $72,000 $65,000 Cost of goods sold 41,000 39,000 Gross margin 31,000 26,000 Selling and administrative expenses: Selling expenses 10,800 11,000 Administrative expenses 6,800 6,900 Total selling and administrative expenses 17,600 17,900 Net operating income 13,400 8,100 Interest expense 910 910 Net income before taxes 12,490 7,190 Income taxes 4,996 2,876 Net income 7,494 4,314 Dividends to common stockholders 200 375 Net income added to retained earnings 7,294 3,939 Beginning retained earnings 34,879 30,940 Ending retained earnings $42,173 $34,879

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