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 yearA 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 This Year Last Year $ 4,568 16,200 10,600 1.980 33, 348 5.5,440 9,150 8.920 2,460 25,970 7,600 21,00 28,300 62,148 7,800 20.00 28,600 $ 54,570 Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assetsi Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current Ilabilities Long-term liabilities: Bonds payable Total liabilities Stockholders equity! Common stock Additional paid in capital Totol paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 9,200 1.500 $ 11,300 960 480 12,740 11,280 3.250 21,490 8.750 20,30 980 980 5.100 6,080 34,578 40,658 562.148 5,190 6,080 28.460 34,540 $ 54,570 Last Year $ 92,000 57,000 35,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 97,000 Cost of goods sold 61.000 Gross margin 36,000 Selling and administrative expenses: Selling expenses 10,300 Administrative expenses 13,800 Total selling and administrative expenses 24 100 Net operating income 11,900 Interest expense 1,050 Net income before taxes 10,850 Income taxes 4,340 Net Income 6,510 Dividends to common stockholders 392 Net income added to retained earnings 6,118 Beginning retained earnings 28,460 Ending retained earnings $ 34,578 9,800 12,800 22,600 12,400 1,050 11,350 4,540 6,810 784 6,026 22,434 $ 28,460 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 % %
