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Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new
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 980,000 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 $27.00. 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 Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment $ 4,568 $ 5,440 16,200 9,150 10,600 8,920 1,980 2,460 33,348 25,970 7,800 7,800 21,000 20,800 28,800 28,600 Total assets $ 62,148 $ 54,570 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 11,300 $ 9,200 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 960 480 1,600 480 12,740 11,280 8,750 8,750 21,490 20,030 980 980 5,100 5,100 6,080 6,080 34,578 28,460 40,658 34,540 Total liabilities and stockholders' equity $ 62,148 $ 54,570 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales Cost of goods sold $ 97,000 61,000 Gross margin 36,000 Last Year $ 92,000 57,000 35,000 Selling and administrative expenses: Selling expenses 10,300 9,800 Administrative expenses 13,800 12,800 Total selling and administrative expenses 24,100 22,600 Net operating income 11,900 12,400 Interest expense 1,050 1,050 Net income before taxes 10,850 11,350 Income taxes 4,340 4,540 Net income 6,510 6,810 Dividends to common stockholders Net income added to retained earnings Beginning retained earnings 392 6,118 28,460 Ending retained earnings $ 34,578 784 6,026 22,434 $ 28,460 Required: Compute the following financial data for this year: 1. Earnings per share. Note: Round your answer to 2 decimal places. 2. Price-earnings ratio. Note: Round your intermediate calculations and final answer to 2 decimal places. 3. Dividend payout ratio. Note: Round your intermediate calculations and final answer to 2 decimal places. 4. Dividend yield ratio. Note: Round your intermediate calculations and final answer to 2 decimal places. 5. Book value per share. Note: 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
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