Question
ok t Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue
ok t 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 500,000 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 Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Buildings and equipment, net Land Total property and equipment Total assets $1,120 9,300 13,000 610 $1,290 6.800 10,600 520 24,030 19,210 10,800 10,800. 49,009 43,527 59,809 54,327 $ 83,839 $ 73,537 Accounts payable Liabilities and Stockholders' Equity Current liabilities: Accrued liabilities $ 19,500 1,070 $18,500 740 Notes payable, short term 140 Total current liabilities 20,570 19,380 Long-term liabilities: Bonds payable 9,800 9,800 Total liabilities 30,370 29,180 Stockholders' equity: Common stock 2,000 2,000 Additional paid-in capital 4,000 4,000 Total paid-in capital 6,000 6,000
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