EC2 Q4

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: $ 4,568 $ 5,440 Cash Accounts receivable, net 16,200 10,600 9,150 Inventory 8,920 1,980 2,460 Prepaid expenses 33,348 25,970 Total current assets Property and equipment Land 7,800 21,000 7,800 Buildings and equipment, net Total property and equipment 20,800 28,800 28,600 $54,570 $62,148 Total assets Liabilities and Stockholders' Equity Current liabilities : Accounts payable $11,300 $ 9,200 1,600 960 Accrued liabilities 480 480 Notes payable, short term Total current liabilities 12,740 11,280 Long-term liabilities Bonds payable Total liabilities 8,750 8,750 21,490 20,030 equity Stockholders Common stock 980 980 5,100 5,100 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 6,080 6,080 34 ,578 28,460 40,658 34,540 $62,148 $54,570 Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $97,000 $92,000 61,000 36,000 57,000 35,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income 10,300 9,800 13,800 24,100 11,900 1,050 12,800 22,600 12,400 1,050 Interest expense Net income before taxes 10,850 11,350 4,340 6,510 4,540 Income taxes Net income 6,810 392 784 Dividends to common stockholders Net income added to retained earnings Beginning retained earnings 6,026 22,434 6,118 28,460 $34,578 $28,460 Ending retained earnings 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 Price-earnings ratio 2 3. Dividend payout ratio % 4. Dividend yield ratio % Book value per share 5