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Please answer all parts. thank you Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company
Please answer all parts. thank you
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 shore 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 $ 1,200 9,200 13, 389 620 24,320 $ 1,250 7,400 12,300 650 21,600 9,400 48,572 57,972 $ 82,292 9,400 40,066 49,466 $ 71,066 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 1,000 3 21,000 $ 18,400 750 240 19, 390 9,400 30,400 9,400 28,790 2,000 4,000 6,000 45,892 51,892 $ 82,292 2,000 4,000 6,000 36,276 42,276 $ 71,066 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Last Year $ 64,000 37,000 27,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 74,000 Cost of goods sold 39,800 Gross margin 35,000 Selling and administrative expenses: Selling expenses 10,800 Administrative expenses 6,900 Total selling and administrative expenses 17,700 Net operating income 17,300 Interest expense 940 Net income before taxes 16,360 Income taxes 6,544 Net income 9,816 Dividends to common stockholders 200 Net income added to retained earnings 9,616 Beginning retained earnings 36,276 Ending retained earnings $ 45,892 10,100 6,480 16,500 10,500 940 9,560 3,824 5,736 500 5,236 31,040 $ 36, 276 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 eamed ratio 2. Debt-to-equity ratio 3. Equity multiplier Step by Step Solution
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