Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 1,000,000 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 $28.00. All of the company's sales are on account. (domars in thousands) This Year Last Year 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 Hotes payable, short term Total current liabilities Long-tere liabilities: Bonds payable total liabilities Stockholders' equity: Common stock. Additional poid-in capital Total paid-in capital fetained earnings rotal stockholders' equity Total liabiuties and stockholders. equity \begin{tabular}{rr} $1,300 & $1,610 \\ 16,400 & 9,250 \\ 10,700 & 9,000 \\ 2,000 & 2,500 \\ \hline 30,400 & 22,360 \\ \hline 8,000 & 8,000 \\ 21,200 & 21,000 \\ \hline 29,200 & 29,000 \\ \hline$59,600 & $51,360 \\ \hline & \\ \hline 11,500 & $9,300 \\ 1,000 & 1,700 \\ 500 & 500 \\ \hline 13,000 & 11,500 \\ \hline 5,000 & 5,000 \\ \hline 18,000 & 16,500 \\ \hline 1,000 & 1,000 \\ \hline 5,200 & 5,200 \\ \hline 35,400 & 6,200 \\ \hline 41,600 & 28,660 \\ \hline$59,600 & $51,360 \\ \hline \end{tabular} Required: Compute the following financial data for this year: 1. Earnings pershare. Note: Round your onswer to 2 decimal ploces. 2. Price-earnings ratio. Note: Round your intermedlate calculations and final answer to 2 decimal places. 3. Dividend payout ratio. Note: Round your intermediote calculations and final answer to 2 decimal places. 4. Dividend yleid ratio. Note: Round your intermediote calculations and final answer to 2 decimal places. 5. Book value per share. 3. Dividend payout ratio. Note: Round your intermediate calculations and final answer to 2 decimal places. 4. Dividend yield ratio. Note: Round your intermediate calculations and final answer to 2 decimal places. 5. Book value per share. Note: Round your answer to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial accounting

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

9th edition

978-0132751216, 132751127, 132751216, 978-0132751124

More Books

Students also viewed these Accounting questions