Exercise 14-6 (Algo) Financial Ratios for Assessing Market Performance [LO14-6] 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 830,000 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 $19.50. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets This Year Last Year Current assets: Cash $ $ 5,078 5,190 Accounts receivable, net Inventory 12,600 9,250 9,850 8,320 Prepaid expenses 1,830 2,160 Total current assets 29,358 24,920 Property and equipment: Land 6,300 6,300 Buildings and equipment, net 19,500 19,300 Total property and equipment 25,800 25,600 Total assets $ 55,158 50,520 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ S 9,800 8,450 Accrued liabilities 660 850 Total current liabilities Notes payable, short term Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock 330 330 10,790 9,630 8,750 8,750 19,540 18,380 830 830 Additional paid-in capital 4,350 4.350 Total paid-in capital 5,180 5,180 Retained earnings 30,438 26,960 Total stockholders' equity 35,618 32,140 $ $ Total liabilities and stockholders' equity 55,158 50,520 Sales Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year $ 82,000 Last Year $ 77,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses:" Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) This Year $ 82,000 Last Year $ 77,000 53,500 49,500 28,500 27,500 8,800 8,300 12,300 11,300 21,100 19,600 7,400 7,900 1,050 1,050 6,350 6,850 2,540 2,740 3,810 4,110 332 664 3,478 3,446 26,960 23,514 $ 30,438 $ 26,960 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