Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

thank you!!
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 820,000 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 $19.00. 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 $ 3,980 $ 3,812 12,500 9,200 Accounts receivable, net Inventory 9,800 8,280 Prepaid expenses 1,820 2,140 27,932 23,600 Total current assets Property and equipment: Land 6,200 6,200 19,400 19,200 Buildings and equipment, net Total property and equipment 25,600 25,400 Total assets $ 53,532 $ 49,000 Liabilities and Stockholders' Equity Current liabilities: $ 9,700 $ 8,400 Accounts payable Accrued liabilities 640 BOO 320 320 Notes payable, short term Total current liabilities Long-term liabilities: 10,660 9,520 Bonds payable 7,500 7,500 18,160 17,020 Total liabilities. Stockholders equity: Common stock 820 820 Additional paid-in capital 4,300 4,300 Total paid-in capital 5,120 5,120 Retained earnings 30,252 26,860 Total stockholders' equity 35,372 31,980 Total liabilities and stockholders' equity $ 53,532 $ 49,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales: $ 76,000 Cost of goods sold $ 81,000 53,000 49,000 Gross margin 28,000 27,000 Selling and administrative expenses: Selling expenses 8,700 8,200 Administrative expenses 12,200 11,200 20,900 19,400 Total selling and administrative expenses Net operating income 7,100 7,600 Interest expense 900 900 Net income before taxes 6,200 6,700 Income taxes 2,480 2,680 Net income 3,720 4,020 Dividends to common stockholders 328 656 Net income added to retained earnings 3,392 26,860 3,364 23,496 Beginning retained earnings Ending retained earnings $ 30,252 $ 26,860 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

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

Montgomerys Auditing Classic Reprint Series

Authors: Robert Hiester Montgomery

1st Edition

1390439356, 978-1390439359

More Books

Students also viewed these Accounting questions

Question

What are the APPROACHES TO HRM?

Answered: 1 week ago

Question

Does it avoid use of underlining?

Answered: 1 week ago