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please help Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any
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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 870,000 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 the year was $22. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $2,242 15,100 10,050 1,870 29,262 $ 3,130 10,100 8,480 2,240 23,950 6,700 19,900 26.600 $55,862 6,700 19,700 26,400 $50, 350 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 $10,200 740 370 11,310 $ 8,650 1,050 370 10,070 7,500 17,570 7,500 18,810 870 4,558 5,420 31,632 37,052 $55,862 870 4,550 5,420 27.360 32,780 $50, 350 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $86,000 $81,000 Cost of goods sold 55,500 51,500 Gross margin 30,500 29,500 Selling and administrative expenses: Selling expenses 9,200 8,700 Administrative expenses 12,700 11,700 Total selling and administrative expenses 21,900 20,400 Net operating income 8,600 9, 100 Interest expense 900 900 Net income before taxes 7,700 8,200 Income taxes 3,080 3,280 Net income 4,620 4,920 Dividends to common stockholders 348 696 Net income added to retained earnings 4,272 4,224 Beginning retained earnings 27,360 23, 136 Ending retained earnings $31,632 $27,360 Required: Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12.3).) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12. 3. Return on total assets. (Round your percentage answer to 1 decimal place (.e., 0.1234 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).) Step by Step Solution
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