Exercise 16-5 (Algo) Financial Ratios for Assessing Profitability (L016-5) 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 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 All of the company's sales are on account This Year Last Year $ 4,568 16,200 10,600 1,980 33,348 $ 5,440 9,150 8,920 2,460 25,970 Weller Corporation Comparative Balance Sheet (dollars in thousands Assets Current assets: 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 Habilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity 7,800 21,000 28,300 $62,148 7,800 20,800 28,600 554,570 $11,300 960 480 12,740 $ 9,200 1,600 480 11,280 8.750 21,490 3.750 20,30 980 5,100 6,00 34,578 980 5, 100 6,080 28,460 34,500 40,658 % 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets % % 4. Return on equity %