Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed
image text in transcribed
image text in transcribed
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 600.000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and 50:40 this year. The market value of the company's common stock at the end of the year was $28. All of the company's sales are on account Weiler Corporation Comparative lance Sheet (dollars in thousands) THS Year Last Year $ 1,280 10.600 13,900 750 3 1.270 . 12,600 500 21,00 9,000 9.00 41,410 50 $77.736 Assets Current at cash Accounts receivable.net Inventory Prepaidxpenses Total current Property and equipment Land Bulls and equipment, net Total oroperty and oupent Total se Llabilities and Stockholours Equity Current liabilities Accounts payable Accrued liabilities Hot payable short ter Total current Habilities Long. Isabilities Bonds payable Total Tibitis Stocidiolders equity Costock Additional pidin capital Total paid in capital Retaineering 519,00 $19.000 530 790 20,450 20,220 200 9.200 4,000 4.00 4,600 Additional paid-in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 4,000 4,600 43, 136 47,736 $77,396 4,000 4,600 36,638 41,238 $70,658 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $73,800 $65,000 Cost of goods sold 43,000 37,000 Gross margin 30,000 28,000 Selling and administrative expenses: Selling expenses 10,600 19,700 Administrative expenses 6,900 6,300 Total selling and administrative expenses 17,500 17,000 Net operating income 12,500 11,000 Interest expense 920 920 Net income before taxes 11,580 10,080 Income taxes 4,632 4,032 Net income 6,948 6,048 Dividends to common stockholders 450 450 Net income added to retained earnings 6,498 5,598 Beginning retained earnings 36,638 31,040 Ending retained earnings $43,136 $36,638 Required: Compute the following financial data and ratios for this year: 1. Working capital. (Enter your answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 1. Working capital 2. Current ratio 3. Acid-test ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge Ch

11th Edition

1265083924, 9781265083922

More Books

Students also viewed these Accounting questions

Question

4 How can employee involvement be achieved?

Answered: 1 week ago