Exercise 14-6 (Algo) Financial Ratios for Assessing Market Performance (L014-6) 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 850,000 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 50.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $2050. All of the company's sales are on account eller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $1,810 5 710 Accounts receivable, net 12,800 10,000 Inventory 9.950 8.400 Prepaid expenses 1.850 2,200 Total current assets 26.410 21,310 Property and equipment: Land 6,500 6.500 Buildings and equipment, net 19,700 19,500 Total property and equipment 26. 200 26.000 Total assets $ 52,610 $ 47,310 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 10,000 $3,550 Accrued liabilities 700 950 Notes payable, short tern 350 350 Total current liabilities 11.05 9,850 Long-term liabilities: Bonds payable 5.000 5.000 Total liabilities 16,050 Stockholders equity: 14,850 Common stock Additional paid in capital 850 4,450 Total paid in capital 4.450 Retained earnings 5,300 5,300 Total stockholders' equity 31,260 27 160 36,560 32,460 Total Habilities and stockholders' equity $ 52.610 $ 47,310 850 Last Year $ 79,000 50, 500 28,500 welter Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $34.000 54,500 Cost of goods sold Gross margin 29,500 Selling and administrative expenses Selling expenses 9.000 Administrative expenses 12,5ee Total selling and administrative expenses 21,500 Net operating income 8.000 Interest expense 600 Net Income before taxes 2,400 Income taxes 2,960 Net Income 4,440 Dividends to common stockholders 3:40 Net Income added to retained earnings 4.100 Beginning retained earnings 27,160 Ending retained earnings $ 31,260 8.500 11,500 20.000 3.500 600 7,900 3.160 4,740 680 4,060 23/100 $ 27,160 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 %