Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need answered ASAP!!!! Comparative financial statements for Weller Corporation, a merchandising company for the year ending December 31 appear below The company did not issue
need answered ASAP!!!!
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 600,000 shares of common stock were outstanding The interest rate on the bond payable was 10%, 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 $23 All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,120 10,900 12,000 730 24,750 $ 1,290 7,600 10,900 570 20,360 9,300 45,342 54,642 $ 79,392 9,300 42,776 52,076 $ 72,436 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 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 $ 20,000 960 $ 18,700 860 270 19,830 20,960 8,900 29,860 8,900 28,730 2,000 4,000 6,000 43,532 49,532 $ 79,392 2,000 4,000 6,000 37,706 43,706 $ 72,436 Last Year $ 65,000 36,000 29,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 71,000 Cost of goods sold 42,000 Gross margin 29,000 Selling and administrative expenses: Selling expenses 10,800 Administrative expenses 7,200 Total selling and administrative expenses 18,000 Net operating income 11,000 Interest expense 890 Net income before taxes 10, 110 Income taxes 4,044 Net income 6,066 Dividends to common stockholders 240 Net income added to retained earnings 5,826 Beginning retained earnings 37,706 Ending retained earnings $ 43,532 10,400 6,100 16,500 12,500 890 11,610 4,644 6,966 300 6,666 31,040 $ 37,706 Required: Compute the following financial ratios for this year. 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. (For all requirements, round your answers to 2 decimal places.) 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started