Answered step by step
Verified Expert Solution
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
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 970,000 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 $26. 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 $ 3,302 4,230 9,100 8,880 2,440 31,922 24,650 16,100 10,550 1,970 Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: 7,700 7,700 20.900 20,700 28,60028 400_ $60,522 $53,050 Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities $11,200 $ 9,150 1,550 470 11,170 Accounts payable 940 470 12,610 Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: 7,500 Bonds payable Total liabilities 7,500 20,110 18,670 stockholders' equity: 970 5,050 6,020 34,392 970 5, 050 6,020 28,360 Common stock Additional paid-in capital Total paid-in capita.l Retained earnings Total stockholders equity Total liabilities and stockholders' equity 40,412 34,380_ $60,522 $53,050
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started