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 820,000 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 50 40 this year. The market value of the company's common stock at the end of this year was $19 All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Assets Last Year Current assets: Cash $ 3,812 Accounts receivable, net $ 3,980 12,500 9,200 Inventory Prepaid expenses 9,800 8,200 1.820 2,140 Total current assets 27,932 Property and equipoent 23,600 Land 6,200 6,200 Buildings and equipment, net 19,400 19,200 Total property and equipment 25.000 25.400 Total assets $53,532 $.49.000 Liabilities and Stockholders' Equity Current liabilities Accounts payable 5.9,700 Accrued liabilities $ 8,400 640 800 Notes payable, short term 320 Total current liabilities 320 Long term liabilities 10,660 9,520 Bonds payable 20 Total liabilities 745.00 18,160 Stockholders' equity 17,020 Common stock 820 020 Additional paid in capital Total pald-in capital 4.300 3.300 Retained earnings 5,120 5,120 30.252 26,360 Total stockholders' equity 35. 172 31,980 Total liabilities and stockholders' equity $53,532 $ 49,000 37:11 900 ces Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 81,000 $ 76,000 Cost of goods sold 53,600 49,eee Gross margin 28,800 27,800 Selling and administrative expenses: Selling expenses 8,708 8,200 Administrative expenses 12,200 11,200 Total selling and administrative expenses 20,900 19.400 Net operating income 7,100 7,600 Interest expense 900 Net income before taxes 6,2ee 6,700 Income taxes 2,480 2.680 Net Income 3,720 Dividends to common stockholders 4,020 328 656 Net income added to retained earnings 3,392 3,364 Beginning retained earnings 26,860 23,496 Ending retained earnings $ 30,252 $ 26,860 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 os 12,3).) 2. Net profit margin percentage (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered als 12,3).) 3. Return on total assets (Round your percentage answer to 1 decimal place lie., 0.1234 should be entered os 12.3).) 4 Return on equity. (Round your percentage onswer to 2 decimal places (ie, 0.1234 should be entered os 12.34).) 1. Gross margin percentage 2 Net profit margin percentage 1% 3. Return on total assets % 4. Return on equity %
