Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 890,000 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 $22.50. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands This Year Last Year $ 4,774 15,300 10,150 1,890 32,114 $ 5,550 10,200 8,560 2.280 26,590 6,900 20,100 27,000 $ 59, 114 6,900 19,900 26.800 $ 53,390 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 ter Total current liabilities long-term liabilities Donde payable Total liabilities stockholders' equity Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 10,400 780 390 11,570 58,750 1.150 390 10,290 10.000 21,5720 10,000 20290 890 4,650 5,540 32.004 32,544 $ 59,114 890 6,650 5,560 22.560 33,100 553,390 Last Year $ 83,000 52.500 30,500 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 88,000 Cost of goods sold 56,500 Gross margin 31,500 Selling and administrative expenses: Selling expenses 9.400 Administrative expenses 12.900 Total selling and administrative expenses 22.300 Net operating Income 9,200 Interest expense 1.200 Net Income before taxes 8.000 Income taxes 3,200 Net income 4,800 Dividends to common stockholdere 356 Net income added to retained earnings 4.444 Beginning retained earnings 22.560 Ending retained earnings $ 32,004 8.900 11,900 20,800 9,700 1,200 8,500 3,400 5, 100 712 4.30 23. 172 $ 27,560 Required: Compute the following financial data for this year 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Price-earnings ratio (Round your intermediate calculations and final answer to 2 decimal places.) 3. Dividend payout ratio, (Round your intermediate calculations and final answer to 2 decimal places.) 4. Dividend yield ratio (Round your intermediate calculations and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.) 1. Earnings per share 2. Proe earnings ratio 3. Dividend payout ratio 4. Dividend yield ratio 5. Book value per share %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Non-Finance People

Authors: Sandeep Goel

2nd Edition

0367185083, 9780367185084

More Books

Students also viewed these Accounting questions