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 880,000 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 $075 last year and $0.40 this year. The market value of the company's common stock at the end of the year was $22. All of the company's sales are on account This Year Last Year $ 3,508 15,200 10,100 1,880 38,688 $ 4,340 10,150 3,520 2,260 25.270 Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets! Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long term 1 abilities: Bonds payable 6,500 20,000 26,800 557,488 6,800 19,500 26,600 $51,870 $10,300 760 380 $ 8,700 1,100 980 10.180 5,750 8,750 20,198 18,939 Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 880 4,600 5,480 31,818 37,298 $57,488 880 4,60 5,480 27,460 32,940 $51,870 Last Year $82,800 52, eee 30,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $87,000 Cost of goods sold 56, eee Gross margin 31, eee Selling and administrative expenses: Selling expenses 9,300 Administrative expenses 12,800 Total selling and administrative expenses 22,100 Net operating income 8,900 Interest expense 1, ese Net income before taxes 7,850 Income taxes 3,140 Net income 4,710 Dividends to common stockholders 352 Net income added to retained earnings 4,358 Beginning retained earnings 27,460 Ending retained earnings $31,818 8,800 11,800 20,600 9,400 1,050 8,350 3,340 5,010 704 4,306 23,154 $27,468 Required: Compute the following financial data for this year 1. Gross margin percentage (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12,3).) 2 Net profit margin percentage. (Round your percentage answer to 1 decimal place (1.0, 0.1234 should be entered as 12.3).) 3. Return on total assets, (Round your percentage answer to 1 decimal place (1...01234 should be entered as 12,3).) 4. Return on equity. (Round your percentage answer to 2 decimal places (i., 0.1234 should be entered as 12.34).) Answer is complete but not entirely correct. 1 2 Gross margin percentago Net profit margin percentage Retum on total assets Return on equity 35.6 % 5.4% 71.7 % 12.41 % 3
