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 970,000 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 this year was $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Assets Current assets: Last Year Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land $ 3,302 16,100 10,550 1,970 31,922 $ 4,230 9,100 8,880 2,440 24,650 7,700 20,900 28,600 7,700 20,700 28,400 $53,050 Buildings and equipment, net Total property and equipment Total assets $60,522 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $11,200 940 $ 9,150 Accrued liabilities 1,550 470 Notes payable, short term Total current liabilities 470 12,610 11,170 Long-term liabilities: Bonds payable s00 7,500 18,670 Total liabilities 20,110 Stockholders' equity: Common stock 970 970 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 5,050 5,050 6,020 34,392 40,412 $60,522 6,020 28,360 34,380 Total liabilities and stockholders' equity $53,050 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $96,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense $91,000 56,500 34,500 60,500 35,500 10,200 13,700 23,900 11,600 ,700 12,700 22,400 12,100 900 900 Net income before taxes 11,200 4,480 6,720 776 10,700 4,280 6,420 Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings 388 6,032 28,360 5,944 22,416 Ending retained earnings $34,392 $28,360 Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (i.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 (i.e., 0.1234 should be entered as 12.34).) 1. Gross margin percentage 2. Net profit margin percentage 37.0| % 6.7 % 3. Return on total assets 17.17 % 4. Return on equity
