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need help on how to calculate return on total assets and return on equity. Comparative financial statements for Weller Corporation, a merchandising company, for the
need help on how to calculate return on total assets and return on equity.
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 bonds, which were sold at their face value, was 12%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the year was $27. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 4,568 5,440 9,150 8,920 2,460 16,200 10,600 1,980 Total current assets 33,34825,970 Property and equipment 7,800 7,800 Land Buildings and equipment, net 21,00020,800 28,80028,600 $62,148 $54,570 Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $11,300 $ 9,200 1,600 480 960 480 12,740 11,280 8,750 21,490 20,030 Total current liabilities Long-term liabilities: Bonds payable 8,750 Total liabilitiesStep by Step Solution
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