Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 700,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, 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 $29. All of the company's sales are on account This Year Last Year $1,250 9,800 13,200 620 26,920 $1,60 8,400 18,600 650 21,010 Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 Ilallities: Bonds payable Total libilities Stockholders equity Conon stock 9,000 47,320 56,120 $81,240 9,000 35.900 42900 568,910 $20.000 $10.000 140 21,160 300 700 700 - e to search 21.40 Total Liabilities Stockholders equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 708 4,000 4,700 46,880 51 580 $81,240 700 4,000 4,780 36,750 41,450 568,910 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $73,000 566,808 Cost of goods sold 36,000 37,000 Gross margin 37,000 29,000 Selling and administrative expenses: Selling expenses 11,490 18,500 Administrative expenses 6,700 6,880 Total selling and administrative expenses 18,100 17,300 Niet operating income 18,900 11,700 Interest expense 858 850 Net Income before taxes 10,050 10,650 Income taxes 7,220 4,340 Net income 18,830 6,510 Dividends to common stockholders 700 700 Net income added to retained earnings 10,130 5,610 30,940 Beginning retained canines Ending retained earnings $46,880 $36.750 Required: Compute the following financial data and ratios for this year to search o ! Required: Compute the following financial data and ratios for this year 1. Working capital. (Enter your answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 1. Working capital 2 Current ratio 3 Acid-test ratio L re to search

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor

4th edition

77862376, 978-0077862374

More Books

Students also viewed these Accounting questions

Question

=+1. How do psychologists define memory?

Answered: 1 week ago