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 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 company's common stock at the end of the year was $21.00. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 976 15,000 10,000 1,860 $ 1,920 10,050 8,440 2,220 Total current assets 27,836 22,630 Property and equipment: Land Buildings and equipment, net 6,600 19,800 6,600 19,600 Total property and equipment 26,400 26,200 Total assets $54,236 $48,830 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $10,100 720 360 $ 8,600 1,000 360 11,180 9,960 Total current liabilities Long-term liabilities: Bonds payable 6,250 6,250 Total liabilities 17,430 16,210 Stockholders' equity: Common stock Additional paid-in capital 860 4,500 860 4,500 Total paid-in capital Retained earnings 5,360 31,446 5,360 27,260 Total stockholders' equity 36,806 32,620 Total liabilities and stockholders' equity $54,236 $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 Administrative expenses 8,600 9,100 12,600 11,600 Total selling and administrative expenses 21,700 20,200 Net operating income Interest expense 8,300 750 8,800 750 Net income before taxes Income taxes 7,550 3,020 8,050 3,220 Net income Dividends to common stockholders 4,530 344 4,830 645 Net income added to retained earnings Beginning retained earnings 4,186 27,260 4,185 23,075 Ending retained earnings $31,446 $27,260 Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) Earnings per share 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) Price-earnings ratio 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) Dividend payout ratio % 4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.) Dividend yield ratio % 5. Book value per share. (Round your answer to 2 decimal places.) Book value per share
