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 890,000 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 $0.40. The market value of the companys common stock at the end of the year was $22.50. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)

This Year Last Year

Assets Current assets:

Cash $ 4,774 $ 5,550

Accounts receivable, net 15,300 10,200

Inventory 10,150 8,560

Prepaid expenses 1,890 2,280

Total current assets 32,114 26,590

Property and equipment:

Land 6,900 6,900

Buildings and equipment, net 20,100 19,900

Total property and equipment 27,000 26,800

Total assets $ 59,114 $ 53,390

Liabilities and Stockholders' Equity Current liabilities:

Accounts payable $ 10,400 $ 8,750

Accrued liabilities 780 1,150 Notes payable,

short term 390 390

Total current liabilities 11,570 10,290

Long-term liabilities:

Bonds payable 10,000 10,000

Total liabilities 21,570 20,290

Stockholders' equity:

Common stock 890 890

Additional paid-in capital 4,650 4,650

Total paid-in capital 5,540 5,540

Retained earnings 32,004 27,560

Total stockholders' equity 37,544 33,100

Total liabilities and stockholders' equity $ 59,114 $ 53,390

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)

This Year Last Year

Sales $ 88,000 $ 83,000

Cost of goods sold 56,500 52,500

Gross margin 31,500 30,500

Selling and administrative expenses:

Selling expenses 9,400 8,900

Administrative expenses 12,900 11,900

Total selling and administrative expenses 22,300 20,800

Net operating income 9,200 9,700

Interest expense 1,200 1,200

Net income before taxes 8,000 8,500

Income taxes 3,200 3,400

Net income 4,800 5,100

Dividends to common stockholders 356 356

Net income added to retained earnings 4,444 4,744

Beginning retained earnings 27,560 22,816

Ending retained earnings $ 32,004 $ 27,560

Required: 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).)