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please answer all parts, thank you! Exercise 14-6 (Algo) Financial Ratios for Assessing Market Performance [LO14-6] Comparative financial statements for Weller Corporation, a merchandising company,
please answer all parts, thank you!
Exercise 14-6 (Algo) Financial Ratios for Assessing Market Performance [LO14-6] 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 940,000 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 $25.00. All of the company's sales are on account. Weller Corporation. Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assetat Cash $5,304 $5,350 15,800 10,450 Accounts receivable, net Inventory 10,400 8,760 Prepaid expenses 1,940 2,380 33,444 26,940 Total current assets. Property and equipment: Land 7,400 7,400 20,600 20,400 Buildings and equipment, net Total property and equipment 28,000 27,800 Total assets $ 61,444 $ 54,740 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 10,900 $9,000 Accrued liabilities. 880 1,400 440 440 Notes payable, short term Total current liabilities Long-term liabilities: 12,220 10,840 10,000 10,000 22,220 Bonds payable Total liabilities, Stockholders' equity: Common stock 20,840 940 940 Additional paid-in capital 4,900 4,900 Total paid-in capital 5,840 5,840 Retained earnings 33,384 28,060 Total stockholders' equity 39,224 33,900 Total liabilities and stockholders' equity $61,444 $ 54,740 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $ 88,000 Sales $93,000 Cost of goods sold 59,000 55,000 Gross margin 34,000 33,000 Selling and administrative expensen! Selling expenses 9,900 9,400 Administrative expenses 13,400 12,400 23,300 21,800 Total selling and administrative expenses Net operating income. 10,700 11,200 Interest expense 1,200 1,200 Net income before taxes 9,500 10,000 Income taxes 3,800 4,000 Net income 5,700 6,000 Dividends to common stockholders 376 752 Net income added to retained earninga 5,324 28,060 5,248 22,812 Beginning retained earnings Ending retained earnings $ 33,384 $ 28,060 Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.) 1. Earnings per share 2. Price-earnings ratio 3: Dividend payout ratio : % 4. Dividend yield ratio % 5. Book value per share Step by Step Solution
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