Exercise 14-6 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 890,000 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 the year was $22.50. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: $ 4,774 15,3001 $ 5,550 10,200 10,150 8,560 1,890 2,280 32,114 26,590 Land 6,900 6,900 Buildings and equipment, net. 20,100 19,900 Total property and equipment 27,000 26,800 Total assets $59,114 $53,390 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $10,400 $ 8,750 Accrued liabilities 780 1,150 Notes payable, short term 390 390 Total current liabilities Long-term liabilities: Bonds payable Total liabilities 11,570 10,290 10,000 10,000 21.570 20:290 < Prev 6 of 7 Next > Total paid-in capital Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Retained earnings 10,000 10,000 21,570 20,290 890 890 4,650 4,650 5,540 5,540 32,004 27,560 Total stockholders' equity 37,544 33,100 Total liabilities and stockholders' equity $59,114 $53,390 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin $88,000 $83,000 56,500 52,500 31,500 30,500 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses 9,400 8,900 12,900 11,900 22,300 20,800 Net operating income 9,200 9,700 Interest expense 1,200 1,200 Net income before taxes 8,000 8,500 Income taxes 3,200 3,400 Net income 4,800 5,100 Dividends to common stockholders 356 712 Net income added to retained earnings 4,444 4,388 Beginning retained earnings 27,560 23,172 Ending retained earnings $32,004 $27,560 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 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 %