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 850,000 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 $20. All of the company's sales are on account eller Corporation Comparative Balance Sheet dollars in thousande) This Year Last Year Assets Current ant Cash $ 1,810 $ 210 Rocounts receivable, bet 12,800 10,000 Inventory 9,950 8,400 Prepaid expenses 1,850 2,200 Total current onets 26,410 21.310 Property and equipment Land 6,500 6,500 Buildings and equipment, not 19.700 19,500 Total property and equiposent 26,200 26,000 Total acts $ 52,610 $ 47,310 Liabilities and stockholders' Equity Current liabilities Accounts payable $ 10,000 $ 8,550 Accrued liabilities 700 950 Notes payable, short term 350 350 Total current liabilities 11.050 9,950 Long-term liabilities: Monds payable 5,000 5.000 Total liabilities 16.050 14,850 stockholders' equity: Common stock 850 Additional paid in capital 4,450 4,450 Total paid in capital 5,300 5,300 Retained earnings 21.260 22,160 Total stockholders' equity 36.560 32,460 Total liabilities and stockholders' equity $ 52,610 $ 47,310 850 Last Year $ 79,000 50.500 28,500 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 84,000 cost of goods sold 54,500 Gross margin 29,500 Selling and administrative expenses Selling expenses 9,000 Administrative expenses 12,500 Total selling and administrative expenses 21,500 Net operating income 8,000 Interest expense 600 Net income before taxes 7,400 Income taxes 2,960 Net income 4,440 Dividends to common stockholders 340 Net Income added to retained earnings 4,100 Beginning retained earnings 27, 160 Ending retained earnings $ 31,260 8,500 11,500 20,000 8,500 600 7,900 3,160 4,740 680 4,060 23,100 $ 27,160 Required: Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 12,3).) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (le, 01234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (l.e., 01234 should be entered as 12.3).) 4. Return on equity. (Round your percentage answer to 2 decimal places (l.e., 0.1234 should be entered as 12.34).) 1. Gross margin percentage 2. Not profit margin percentage 3. Return on total assets 4. Return on equity 35,1% 5.31% 8.81% 12.87%
