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 950,000 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 companys common stock at the end of this year was $25.50. All of the companys sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 770 $ 1,810 Accounts receivable, net 15,900 9,000 Inventory 10,450 8,800 Prepaid expenses 1,950 2,400 Total current assets 29,070 22,010 Property and equipment: Land 7,500 7,500 Buildings and equipment, net 20,700 20,500 Total property and equipment 28,200 28,000 Total assets $ 57,270 $ 50,010 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 11,000 $ 9,050 Accrued liabilities 900 1,450 Notes payable, short term 450 450 Total current liabilities 12,350 10,950 Long-term liabilities: Bonds payable 5,000 5,000 Total liabilities 17,350 15,950 Stockholders' equity: Common stock 950 950 Additional paid-in capital 4,950 4,950 Total paid-in capital 5,900 5,900 Retained earnings 34,020 28,160 Total stockholders' equity 39,920 34,060 Total liabilities and stockholders' equity $ 57,270 $ 50,010 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 94,000 $ 89,000 Cost of goods sold 59,500 55,500 Gross margin 34,500 33,500 Selling and administrative expenses: Selling expenses 10,000 9,500 Administrative expenses 13,500 12,500 Total selling and administrative expenses 23,500 22,000 Net operating income 11,000 11,500 Interest expense 600 600 Net income before taxes 10,400 10,900 Income taxes 4,160 4,360 Net income 6,240 6,540 Dividends to common stockholders 380 760 Net income added to retained earnings 5,860 5,780 Beginning retained earnings 28,160 22,380 Ending retained earnings $ 34,020 $ 28,160 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.)