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 950,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 12%. 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 $25.50. All of the company's sales are on account. This Year Last Year Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 770 15,900 10,450 1,950 $ 1,810 9,000 8,800 2,400 29,070 22,010 Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment 7,500 20,700 7,500 20,500 28,000 28,200 Total assets $57,270 $50,010 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $ 11,000 900 450 $ 9,050 1,450 450 12,350 10,950 5,000 5,000 17,350 15,950 Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings 950 4,950 950 4,950 5,900 34,020 5,900 28,160 Total stockholders' equity 39,920 34,060 Total liabilities and stockholders' equity $57,270 $50,010 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $94,000 $89,000 Cost of goods sold 59,500 55,500 Gross margin 34,500 33,500 Selling and administrative expenses: Selling expenses Administrative expenses 10,000 13,500 9,500 12,500 23,500 22,000 11,000 600 11,500 600 10,400 4,160 10,900 4,360 Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 6,240 380 6,540 760 5,860 28,160 5,780 22,380 $34,020 $28,160 Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) Earnings per share 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) Price-earnings ratio 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) Dividend payout ratio % 4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.) Dividend yield ratio % 5. Book value per share. (Round your answer to 2 decimal places.) Book value per share
