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

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 880,000 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 $22.00. All of the company's sales are on account. Weller Corporation Comparative Balance sheet (dollars in thousands) This Year Last Year $ 3,50B 15, 200 10,100 1,880 30, 688 $ 4,340 10,150 8,520 2,260 25, 270 6,800 20,000 26,800 $ 57,488 6,800 19,800 26,600 $ 51,870 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 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 $ 10,300 760 380 11,440 $ 8,700 1,100 380 10,180 8,750 20, 190 B, 750 18,930 880 4,600 5,480 31,818 37,298 $ 57,488 880 4,600 5,480 27,460 32,940 $ 51,870 Weller Corporation Comparative Income Statement and Reconciliation dollars in thousands) This Year $ 87,000 56,000 31,000 Last Year $ 82,000 52,000 30,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxea Income taxes Net income Dividends to coumon stockholders Net income added to retained earninga Beginning retained earnings Ending retained earnings 9,300 12,800 22, 100 8,900 1,050 7,850 3,140 4,710 352 4,358 27, 460 $ 31,818 8,800 11,800 20,600 9,400 1,050 8,350 3,340 5,010 704 4,306 23,154 $ 27,460 Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.) 1. Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio 4. Dividend yield ratio 5. Book value per share % %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions