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 990,000 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 $0.40 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 Weller Corporation Comparative Balance Sheet (dollars in thousanda) This Year Last Year $ 5,834 16,300 10,650 1,990 34.774 $ 6,650 9.200 8,960 2,480 27.290 7,900 21.100 29.000 $63,774 7.900 20,900 28,400 $56,090 O rences Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment Land thaildings and equipment, net Total property and equipment Total assets Liabilities and stockholders' Equity Current liabilities Accounts payable Neerud liabilities Noten payable, short tern Total current linhslities Long-term liabilities: Banda payable Total liabilities Stockholders' equity Common stock Additional paid in capital Total paid in capital Retained earning Total stockholders' equity Total liabilities and stockholders' equity $ 9,250 1.650 $11,400 980 490 12,870 11,390 10,000 22, R70 10.000 21,190 990 5,150 6,140 34,764 40.204 $63,774 990 5,150 6,140 23.560 34,700 $56.090 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $98,000 $93,000 Cost of goods sold 61,500 57,500 Gross margin 36,500 35,500 Selling and administrative expenses: Selling expenses 10,400 9,900 Administrative expenses 13,900 12,900 Total selling and administrative expenses 24,300 22,800 Net operating income 12,200 12,700 Interest expense 1,200 1,200 Net income before taxes 11,000 11,500 Income taxes 4,400 4,600 Net income 6,600 6,900 Dividends to common stockholders 396 792 Net Income added to retained earnings 6,204 6,108 Beginning retained earnings 28,560 22,452 Ending retained earninga $34, 764 $28,560 Required: Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12.3).) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 4. Return on equity. (Round your percentage answer to 2 decimal places (l.e., 0.1234 should be entered as 12.34).) 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets 4. Return on equity % % % %
