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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

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 960,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 12%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the companys common stock at the end of the year was $26. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
This Year Last Year
Assets
Current assets:
Cash $ 2,036 $ 3,020
Accounts receivable, net 16,000 9,050
Inventory 10,500 8,840
Prepaid expenses 1,960 2,420
Total current assets 30,496 23,330
Property and equipment:
Land 7,600 7,600
Buildings and equipment, net 20,800 20,600
Total property and equipment 28,400 28,200
Total assets $ 58,896 $ 51,530
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 11,100 $ 9,100
Accrued liabilities 920 1,500
Notes payable, short term 460 460
Total current liabilities 12,480 11,060
Long-term liabilities:
Bonds payable 6,250 6,250
Total liabilities 18,730 17,310
Stockholders' equity:
Common stock 960 960
Additional paid-in capital 5,000 5,000
Total paid-in capital 5,960 5,960
Retained earnings 34,206 28,260
Total stockholders' equity 40,166 34,220
Total liabilities and stockholders' equity $ 58,896 $ 51,530

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
This Year Last Year
Sales $ 95,000 $ 90,000
Cost of goods sold 60,000 56,000
Gross margin 35,000 34,000
Selling and administrative expenses:
Selling expenses 10,100 9,600
Administrative expenses 13,600 12,600
Total selling and administrative expenses 23,700 22,200
Net operating income 11,300 11,800
Interest expense 750 750
Net income before taxes 10,550 11,050
Income taxes 4,220 4,420
Net income 6,330 6,630
Dividends to common stockholders 384 768
Net income added to retained earnings 5,946 5,862
Beginning retained earnings 28,260 22,398
Ending retained earnings $ 34,206 $ 28,260

Required:

Compute the following financial data for this year:

1. Gross margin percentage.

2. Net profit margin percentage.

3. Return on total assets.

4. Return on equity.

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