Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

please help
image text in transcribed
image text in transcribed
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 1,000,000 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 $28.00. 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 $ 1,300 $ 1,610 Accounts receivable, net 16,400 9,250 Inventory 18,700 9,000 Prepaid expenses 2.000 2,500 Total current assets 38,400 22, 360 Property and equipment: Land 8,000 8,000 Buildings and equipment, net 21,200 21,000 Total property and equipment 29,200 29,000 Total assets $59,600 551,360 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $11,500 $ 9,300 Accrued liabilities 1,000 1,700 Notes payable, short term 500 500 Total current liabilities 13,000 11,500 Long-term liabilities: Bonds payable 5,000 5,000 Total liabilities 16/600 16,500 Stockholders equity: Comon stock 1.000 1,000 Additional paid in capital 5,200 5, 200 Total paid-in capital 6,200 6,200 Retained earnings 35) 400 28.660 Total stockholders' equity Total liabilities and stockholders' equity $59,600 $51, 360 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $99,000 $94,000 Cost of goods sold 62,000 58,000 Gross margin 37,000 36,000 Selling and administrative expenses: Selling expenses 10,500 10,000 Administrative expenses 14,000 13,000 Total selling and administrative expenses 24,500 23,000 Net operating income 12,500 13,000 Interest expense 600 600 Net income before taxes 11,900 12,400 Income taxes 4,760 4,960 Net income 7,140 7,440 Dividends to common stockholders 400 800 Net income added to retained earnings 6,740 6,640 Beginning retained earnings 28,660 22,020 Ending retained earnings $35,400 $28,660 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 answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing An Introduction To International Standards On Auditing

Authors: Rick Stephan Hayes, Roger Dassen, Arnold Schilder, Philip Wallage

2nd Edition

0273684108, 978-0273684107

More Books

Students also viewed these Accounting questions