Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Comparative financial statements for Welter 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
image text in transcribed
Comparative financial statements for Welter 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 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 $0.75 year and $0.40 this year. The market value of the company's common stock at the end of the year was $27. All of the company's sa are on account Heller Corporation Comparative se lance Sheet (dollars in thousands) This Year Last Year 51,110 9,00 13,900 610 25,520 $1,370 6.900 10.600 550 Assets Current assets Cash Accounts receivable, et Inventor Dregalo penses Total current assets Property and equipment Land Dublings and equipment, et Total property and unent Total assets Libilities and Stockholders' fouity Current Tissities Accued lisbilities Notes sable, short ter Totalt Loter listes bonds by Total Silities 10,500 39.156 50 575, 176 10,500 18.776 40.270 5,100 1.000 $17.500 250 2 10.500 370 SA CESTO 2,000 2.00 Ne> pe here to search O a 28,280 27,540 Total liabilities Stockholders' equity: Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2,000 4,000 6,000 41,596 47,596 575,876 2,000 4,099 6,000 35,158 41,158 $68, 698 Heller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales 572,000 564,000 Cost of goods sold 42.000 39,000 Gross margin 30,000 25,000 Selling and administrative expenses Selling expenses 10,800 10,500 Administrative expenses 7,200 5,100 Total selling and aoministrative expenses 18,000 26.600 Het operating Income 12,000 3,400 Interest expense 370 870 Het Income before taxes 11,130 7,530 Income taxes 3,012 Net Income 6,678 Dividends to common stockholders 240 300 tiet income added to retained carings 5.650 4,218 Beginning retained ternings 35, 136 30,140 Ending retained earnings $4,500 535.158 Required: - here to search o 35 Required: Compute the following financial ratios for this year 1. Times interest eamed ratio. 2. Debt-to-equity ratio. 3. Equity multiplier (For all requirements, round your answers to 2 decimal places.) 1 2 Times interest earned ratio Debt-to-equity ratio Equity multiplier 3 to search

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

Recommended Textbook for

Business Statistics

Authors: Robert A Donnelly, Robert Donnelly Jr

2nd Edition

0133852288, 9780133852288

Students also viewed these Accounting questions

Question

(101) is a period of the expansion of 6/7 2/7 1/5

Answered: 1 week ago