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 880,000 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 50.75 last year and $0,40 this year. The market value of the company's common stock at the end of this year was $22. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $3,500 15,200 10,100 1.800 30.5.88 $ 4,340 10,150 3,520 2,260 25 270 6,300 20,000 2009 5.57.48 6.000 19,800 36.000 $ 51,070 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment Land Buildings and equipment, et Total property and equipment Total assets Llabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Longtere liabilities: fonds payable Total abilities Stockholders' equity! Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 3,00 1,100 $ 10,300 760 350 11,440 10,10 3.25 20, 120 0,250 11.90 800 4.600 5.400 M 22 2200 $ 52.41 $ 51,00 eBook Hint 11,800 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 87,000 $ 82,000 Cost of goods sold 56,000 52,000 Gross margin 31,000 30,000 Selling and administrative expenses: Selling expenses 9,300 8,800 Administrative expenses 12,800 Total selling and administrative expenses 22,180 20,600 Net operating income 8,900 9,400 Interest expense 1,050 1,050 Net Incone before taxes 7,850 8,350 Income taxes 3, 140 3340 Net income 4,710 5,010 Dividends to comon stockholders 352 Net Income added to retained earnings 4,358 4,306 Beginning retained earnings 27,460 23,154 Ending retained earnings 5 31,818 $ 27,460 Required: Compute the following financial data for this year 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (ie. 0.1234 should be entered os 12.3).) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (i,e., 0.1234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 4. Return on equity. (Round your percentage answer to 2 decimal places (ie. 0.1234 should be entered as 12.34).) 204 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets 4. Return on equity % % 34 3
