Exercise 16-6 (Algo) Financial Ratios for Assessing Market Performance (LO16-6) Comparative financial statements for Weller Corporation,...

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Exercise 16-6 (Algo) Financial Ratios for Assessing Market Performance (LO16-6) 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 870,000 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 04 common stock at the end of this year was $21.50. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) nce Assets Current assets: Cash This Last Year Year 2,242 3,130 Accounts receivable, net 15,100 10,100 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: 10,050 8,480 1,878 2,240 29,262 23,950 6,700 6,700 19,900 19,700 26,600 26,400 $ $ 55,862 50,350 Accounts payable Accrued Liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation 10,200 8,650 740 1,050 370 370 11,310 10,070 7,500 7,500 18,810 17,570 878 4,550 870 4,550 5,420 5,420 31,632 27,360 37,052 32,780 $ $ 55,862 50,350 Comparative Income Statement and Reconciliation Sales (dollars in thousands) Cost of goods sold Gross margin This Last Year Year $ $ 86,000 81,000 55,500 51,500 30,500 29,500 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating Income Interest expense Net incone before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 9,200 8,700 12,700 11,700 21,900 20,400 8,600 9,100 900 7,700 900 8,200 3,088 3,280 4,620 4,920 348 696 4,272 4,224 27,360 23,136 $ $ 31,632 27,360 Exercise 16-6 (Algo) Financial Ratios for Assessing Market Performance (LO16-6) 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 870,000 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 04 common stock at the end of this year was $21.50. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) nce Assets Current assets: Cash This Last Year Year 2,242 3,130 Accounts receivable, net 15,100 10,100 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: 10,050 8,480 1,878 2,240 29,262 23,950 6,700 6,700 19,900 19,700 26,600 26,400 $ $ 55,862 50,350 Accounts payable Accrued Liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation 10,200 8,650 740 1,050 370 370 11,310 10,070 7,500 7,500 18,810 17,570 878 4,550 870 4,550 5,420 5,420 31,632 27,360 37,052 32,780 $ $ 55,862 50,350 Comparative Income Statement and Reconciliation Sales (dollars in thousands) Cost of goods sold Gross margin This Last Year Year $ $ 86,000 81,000 55,500 51,500 30,500 29,500 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating Income Interest expense Net incone before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 9,200 8,700 12,700 11,700 21,900 20,400 8,600 9,100 900 7,700 900 8,200 3,088 3,280 4,620 4,920 348 696 4,272 4,224 27,360 23,136 $ $ 31,632 27,360