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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 810,000 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 $18.50. All of the companys 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 $ 2,546 $ 2,770 12,400 9,150 9,750 8,240 1,810 2,120 26,506 22,280 Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets 6,100 19,300 6,100 19,100 25,400 25,200 $51,906 $47,480 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable $ 9,600 $ 8,350 620 750 310 310 10,530 9,410 6,250 6,250 16,780 15,660 810 4,250 810 4,250 Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 5,060 30,066 5,060 26,760 35,126 31,820 Total liabilities and stockholders' equity $51,906 $47,480 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $80,000 $75,000 Cost of goods sold 52,500 48,500 Gross margin 27,500 26,500 8,600 12,100 8,100 11,100 20,700 19,200 6,800 750 7,300 750 Selling and administrative expenses: 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 Ending retained earnings 6,050 2,420 6,550 2,620 3,630 324 3,930 648 3,306 26,760 3,282 23,478 $30,066 $26,760 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 shareStep by Step Solution
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