Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help thank you. Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not

image text in transcribed

please help 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 600.000 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 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 $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,150 10,800 13,500 610 26,060 $ 1,260 8,300 11,200 620 21,380 9,700 47,052 56,752 $ 82,812 9,700 39,556 49,256 $ 70,636 5 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 $ 20,300 1,040 170 21,519 $ 18,600 740 178 19,510 8,900 30,410 8,909 28,410 600 4,000 4,600 47,802 52,402 $ 82, 812 600 4,000 4,600 37,626 42,226 $ 70,636 Last Yearsal $ 66,000 38,000 28,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 75,000 Cost of goods sold 38,000 Gross margin 37,000 Selling and administrative expenses: Selling expenses 11,100 Administrative expenses 7.300 Total selling and administrative expenses 18,400 Net operating income Interest expense 899 Net income before taxes 17,710 Income taxes 7,084 Net income 10,626 Dividends to common stockholders 450 Net income added to retained earnings 10,176 Beginning retained earnings 37.626 Ending retained earnings $ 47,802 10,200 16,200 16,400 11,600 18,600 890 10, 710 4,284 6,426 240 6,186 31,440 $ 37,626 Required: Compute the following financial data and ratios for this year: 1 Working capital. (Enter your answer in thousands.) 2 Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 1. Working capital 2. Current ratio 3. Acid-test ratio

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

Accounting Advanced

Authors: Claudia Bienias Gilbertson

9th Edition

0538447559, 9780538447553

More Books

Students also viewed these Accounting questions