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 970,000 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 $26. All of the company's sales are on account. eller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 3,302 16,100 10,550 1.970 31,922 $ 4,230 9,100 8,880 2,440 24,650 7,700 20,900 28,600 $ 60,522 7,700 20,700 28,400 $ 53,050 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 liabilities Bonds 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 $ 11,200 940 470 12.610 $ 9,150 1,550 470 11,170 7.500 20, 110 7.500 18,670 970 5,050 6,020 34,392 40.012 $ 60,522 970 5,050 6,020 28.360 34,3180 $ 53,050 900 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 96,000 $ 91,000 Cost of goods sold 60,500 56,500 Gross margin 35,500 34,500 Selling and administrative expenses Selling expenses 10,200 9,700 Administrative expenses 13,700 12,700 Total selling and administrative expenses 23, 900 22,400 Net operating income 11,600 12,100 Interest expense 900 Net income before taxes 10,700 11,200 Income taxes 4,280 4,480 Net income 6,420 6, 720 Dividends to common stockholders 388 776 Net income added to retained earnings 6,032 5,944 Beginning retained earnings 28,360 22, 416 Ending retained earningo $ 34,392 $ 28,360 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 (l.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).) 1. Gross margin percentage % 2. Net profit margin percentage % 3. Return on total assets % 4. Return on equity %
