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 980,000 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 $27. All of the company's soles are on account Neller Corporation Comparative Balance Sheet dollars in thousanda) This Year Last Year Assets Current stat Canh Accounts receivable, het Inventory Prepaid expenses Total current Property and equipment Land Buildings and equipment, et Total property and equipe $4,568 26,200 10, 500 1980 5,440 9, 150 0,920 2.460 7.100 20.000 20.800 Liabilities and stockholders' Equity 454,575 11.300 counts payable Accrued Lisbolitica Motes payable, short te Total current Itabilities tong-term Itabilitat Boods payable Total Stilities 9.200 2.600 480 2.10 This Year Laat Year 64,568 16,200 10.600 1.980 33,346 6 5,440 9, 150 8,920 2,460 25,970 7,800 21,000 28, 800 662,140 7.800 20,800 26,600 454,570 Assets Current asseta: 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 isabilities Bonds payable Total 1.abilities stockholders' equity Common GO Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total Itabilities and stockholders' equity 11.300 960 490 9.200 2.600 480 8.750 3750 201030 380 5,100 980 5.100 COLO 24,578 303653 462.15 2ECO 54, $54.570 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $97,000 $92,000 Cost of goods sold 61,000 57,000 Gross margin 36,000 35,000 Selling and administrative expense 3: Selling expenses 10,300 9,800 Administrative expenses 13,800 12,800 Total selling and administrative expenses 24,100 22, 600 Net operating income 11,900 Interest expense 12,400 1,050 1,050 Net income before taxes 10,850 Income taxes 11,350 Net income 4,340 4,540 Dividends to common stockholders 6,510 6,810 392 Net income added to retained earnings 784 Beginning retained earnings 6, 118 6,026 28,460 22, 434 Ending retained earnings $34,578 $28,460 Required: Compute the following financial data for this year 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (i ... 0.1234 should be entered as 12.3).) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (.e., 01234 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).) 94 1. Gross margin percentage 2 Net profit margin percentage 3. Return on total assets 4. Return on equity 99
