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 910,000 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 the year was $24. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,506 15,500 10,250 1,910 29,166 $1,720 10,300 8,640 2.320 22,980 7,100 20.300 22,400 $56,566 7,200 20,100 27,200 $50, 180 Assets Current assets: Cash Accounts receivable, not 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 eerued liabilities Notes payable, abort torm Total current liabilities Long-term liabilities: Bonds payable Total Habilities Stockholders' equity Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $10,600 820 410 11,830 $ 8,850 1.250 410 10,510 6.250 18,080 6,250 16, 260 910 4,250 5,660 32,826 38,486 556,566 910 4.750 5,660 27,760 33.420 550, 180 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $90,000 585,000 Cost of goods sold 57,500 53,500 Gross margin 32,500 31,500 Selling and administrative expenses : Selling expenses 9.600 9,100 Administrative expenses 13, 100 12, 100 Total selling and administrative expenses 22,700 21,200 Net operating income 9,800 10,300 Interest expense 750 750 Not income before taxes 9,050 9,550 Income taxes 3,620 3,820 Not income 5, 430 5,730 Dividends to common stockholders 364 728 Net income added to retained earnings 5,066 5,002 Beginning retained earnings 27,760 22,758 Ending retained earnings $32,826 $27.760 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 (ie, 0.1234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.c., 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
