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 900,000 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 S0.40 this year. The market value of the company's common stock at the end of the year was $23.00. 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 240 15,400 10,200 1,900 740 $ 510 10,250 8,600 2,300 Total current assets Property and equipment: 21149 21,660 Land 7,000 20,000 27,20027:660 $54,940 $48,660 7,000 20,200 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable $10,500 8,800 1,200 400 Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: 800 400 11,780 10,400 Bonds payable Total liabilities Stockholders' equity: 5,000 16,700 5,000 15,400 Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders equity Total liabilities and stockholders' equity 900 4,700 5,600 32,640 38,240 900 4,700 5, 600 27,660 2433,260 $54,940 $48,660 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: $89,000 $84,000 57,000 53300 32,000 31,000 Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings 9,500 13,000 22,500 9, 500 600 8,900 3,560 5,340 360 4,980 9,000 12,000 21,000 10,000 600 9,400 3,760 5,640 720 4,920 22,740 $27,660 27.660 2O- Ending retained earnings $32,640 Required Compute the following financial data for this year 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 4. Dividend yield ratio. (Round your answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.) 1. Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio 4. Dividend yield ratio 5. Book value per share
