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 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 company's common stock at the end of this year was $25.50 All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year 5 770 15,900 10,450 1,950 29,070 $ 1,01 9,000 8,000 2,400 22.010 7.500 7,500 20,700 28, 200 $57.270 20.500 21.00 $50,010 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 abilities Notes payable, short tern Total current liabilities Long term liabilities Bonds payable Total 1lities Stockholders equity Como Stock Additional pald-in capital Total pald.in capital Retained earnings Total stockholders' equity Total Habilities and stockholders' equity $11,000 900 450 12,350 39.050 1,450 450 10,950 5,00 12/15 5.000 950 050 4450 5,300 34.020 39,20 $57,270 5.900 20. 350.010 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, eee 11,500 Interest expense 600 600 Net income before taxes 19,400 10,980 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 Beginning retained earnings 5,789 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.) 1 Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio 4. Dividend yield ratio 5 Book value per share % %
