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Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new
Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal 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 $0.50. The market value of the companys common stock at the end of the year was $30. All of the companys sales are on account.
Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal 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 $0.50. The market value of the company's common stock at the end of the year was $30. 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 1,240 1,250 Accounts receivable, net 10,500 400 12,500 Inventory 11,100 Prepaid expenses 710 610 Total current assets 24,950 20,360 Property and equipment: Land 9,300 9,300 Buildings and equipment, net 47,502 35,806 Total property and equipment 56,802 45,106 Total assets $81,752 $65,466 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $20,000 $17,800 Accrued liabilities 990 770 Notes payable, short term 260 260 Total current liabilities 21,250 18,830 Long-term liabilities: 8,400 8,400 Bonds payable Total liabilities 29,650 27,230 Stockholders' equity: Common stock 600 600 4,000 Additional paid-in capital 4,000 Total paid-in capital 4,600 4,600 47,502 33,636 Retained earnings Total stockholders' equity 52,102 38,236 Total liabilities and stockholders' equity $81,752 $65,466Step by Step Solution
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