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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

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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 860,000 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 $21. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 976 15,000 10,000 1,860 27,836 $ 1,920 10,050 8,440 2,220 22,630 6,600 19,800 26,400 $54,236 6,600 19,600 26,200 $48,830 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 liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $10,100 720 360 11, 180 $ 8,600 1,000 360 9,960 6,250 17,430 6,250 16,210 860 4,500 5,360 31,446 36,806 $54,236 860 4,500 5,360 27,260 32,620 $48,830 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $85,000 $80,000 Cost of goods sold 55,000 51,000 Gross margin 30,000 29,000 Selling and administrative expenses: Selling expenses 9, 100 8,600 Administrative expenses 12,600 11,600 Total selling and administrative expenses 21,700 20,200 Net operating income 8,300 8,800 Interest expense 750 750 Net income before taxes 7,550 8,050 Income taxes 3,020 3,220 Net income 4,530 4,830 Dividends to common stockholders 344 688 Net income added to retained earnings 4,186 4, 142 Beginning retained earnings 27,260 23, 118 Ending retained earnings $31,446 $27,260 Required: Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 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 (.e., 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 % % % % 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 860,000 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 $21. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 976 15,000 10,000 1,860 27,836 $ 1,920 10,050 8,440 2,220 22,630 6,600 19,800 26,400 $54,236 6,600 19,600 26,200 $48,830 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 liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $10,100 720 360 11, 180 $ 8,600 1,000 360 9,960 6,250 17,430 6,250 16,210 860 4,500 5,360 31,446 36,806 $54,236 860 4,500 5,360 27,260 32,620 $48,830 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $85,000 $80,000 Cost of goods sold 55,000 51,000 Gross margin 30,000 29,000 Selling and administrative expenses: Selling expenses 9, 100 8,600 Administrative expenses 12,600 11,600 Total selling and administrative expenses 21,700 20,200 Net operating income 8,300 8,800 Interest expense 750 750 Net income before taxes 7,550 8,050 Income taxes 3,020 3,220 Net income 4,530 4,830 Dividends to common stockholders 344 688 Net income added to retained earnings 4,186 4, 142 Beginning retained earnings 27,260 23, 118 Ending retained earnings $31,446 $27,260 Required: Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 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 (.e., 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 % % % %

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