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
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 $0.40 this year. The market value of the company's common stock at the end of the year was $27 All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,160 9,900 13,480 700 25,160 $ 1,330 7.600 11,100 600 20,630 Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities 10.200 44.666 54,866 580,26 10,200 36,598 46,798 567,428 $19,500 3, eso $17,600 810 zee 25,160 680 20,630 10,200 44,666 54,866 $80,026 10,200 36, 598 46,798 $67,428 Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $19,500 1,080 210 20,790 $17,600 810 210 18,620 8,200 28,990 8, 2ee 26,820 600 4,000 4,600 46,436 51,036 $80, 026 600 4,000 4,600 36,808 48,608 $67,428 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $75,000 $65,000 Cost of goods sold 38,000 39,000 Gross margin 37 , 26,000 Selling and administrative expenses: Selling expenses 11,200 10, eee Administrative expenses 7,100 6,400 Total selling and administrative expenses 18,300 16,400 Net operating income 18,700 9,600 Interest expense 820 820 Net income before taxes 17,880 8,780 Income taxes 7,152 3,512 Net income 10,728 5,268 Dividends to common stockholders 300 3ee Net income added to retained earnings 10,428 4,968 Beginning retained earnings 36,008 31, 040 Ending retained earnings $46, 436 $36,608 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_2

Step: 3

blur-text-image_3

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

Accounting and auditing research tools and strategies

Authors: Thomas Weirich, Thomas Pearson, Natalie Tatiana

8th edition

9781118806487, 1118027078, 1118806484, 978-1118027073

More Books

Students also viewed these Accounting questions

Question

Who responds to your customers complaint letters?

Answered: 1 week ago