Exercise 14-6 (Algo) Financial Ratios for Assessing Market Performance (L014-6) Comparative financial statements for Weder 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 870,000 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 $2150. All of the company's sales are on account: This Year Last year $ 2.242 15,100 10.050 1570 29262 $ 3.130 10,100 4,450 3240 6,700 13.900 26.600 eller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets! Cash Accounts receivable, het Teventory Prepaid expenses Total current assets Property and equipoent Land fulldings and equipment, net Total property and equipent Total assets Liabilities and Stockholders' Equity Current abilities Accounts payable ccrued abilities Notas payable, short term Total current liabilities Long-term liabilities Bonds payable Total liabilities stockholders equity Con stock Additional pald-in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders equity 6.700 10. 26.400 150,350 $ 55,562 $ 10,200 740 370 11.10 58,650 1,050 370 10,07e 2.500 12.30 74500 16810 070 $550 5,420 sa 4.550 5,420 27360 32280 550, 350 37,052 $ 55,062 Last Year 501.000 51, 20.500 eller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales 5 36.000 Cost of goods sold 55,500 Gruss margin Selling and administrative expenses Selling expenses 9,200 Administrative expenses 12.700 Total selling and administrative expenses 21,900 Net operating income 8.600 Interest expense Net Income before taxes 7.700 Income Taxes Net Income 4,620 Dividends to common stockholders 3340 let Income added to retained earnings 4,272 Beginning retained earnings 227360 Ending retained earnings 5.31.632 8,70 11.700 20.400 9,100 so 3,200 3.250 4,920 696 6,224 23,136 $ 22,00 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 camings to 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 500,000 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 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $23. All of the company's sales are on account Wer Corporation Comparative balance sheet (dolles in thousands) This Year Last year $ 1,100 10,400 13,200 650 25, 250 $ 1,350 26,900 12,500 50 21.410 10,700 10,700 34,044 52.6611 $ 78,018 366,154 Assets Current Cash Accounts receivable.net Inventory Prepaid expenses Total current assets Property and equipment Land buildings and equipment, et Total property and equipment Total assets Liabilities and stockholders' Equity Current tiesi Accounts payable Acerved Habilities Notes payable, short term Total current liabilities Long-term liabilities Bonds payable Total abilities Stockholders' equity Con stock Additional paid in capital Total paid in capital Betained earnings Total stockholders' quity Total liabilities and stockholders equity 5.19.200 5 17,700 790 210 10,660 20.140 BEDO 28,740 3.500 22260 2,000 4.000 6,000 63278 49,225 $ 78,018 2,000 4.000 6,000 32,094 38,894 $ 66,154 Last Year 564,000 42.600 22.00 Weller Corporation Comparative Incon Statement and Reconciliation (dollars in thousands) This Year Sales 5 72.00 Cost of goods sold 35 Selling and dinistrative expenses Selling expenses 11,100 Administrative expenses Total selling and administrative expenses 18,500 Met operating income 18,500 Interest pense 860 Net Income before taxes 17. Income taxes 2.056 Net Income 10,504 Dividends to common stockholders 200 Net Income added to retained earnings 10,134 Beginning retained earnings 332094 Ending retained rings 543,278 2.400 10,00 6.500 17,00 4.700 360 3,840 1,536 2,384 2.054 30,840 $ 32,094 Required: Compute the following financial ratios for this year 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier (For all requirements, round your answers to 2 decimal places.) 1 The Westeaedtato 2. Debtto-equity rato 3. Equity multiplier