Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,090 10,500 12,600 710 24,900 6,700 11,800 670 20,520 9,200 47, 306

image text in transcribed
image text in transcribed
Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,090 10,500 12,600 710 24,900 6,700 11,800 670 20,520 9,200 47, 306 56,506 $81,406 9,200 41, 278 50,478 $ 70,998 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 $20,300 920 $17,900 700 230 18,830 21,220 8,700 8,700 29,92027,530 2,000 4,000 6,000 45,486 51, 486 $81,406 2,000 4,000 6,000 37,468 43,468 $ 70,998 13 VALLA Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $68,000 $66,000 Cost of goods sold 35,000 37,000 Gross margin 33,000 29,000 Selling and administrative expenses : Selling expenses 11,100 10,200 Administrative expenses 7,200 6,300 Total selling and administrative expenses 18,300 16,500 Net operating income 14,700 12,500 Interest expense 870 870 Net income before taxes 13,830 11,630 Income taxes 5,532 4,652 Net income 8,298 6,978 Dividends to common stockholders 280 350 Net income added to retained earnin 8,018 6,628 Beginning retained earnings 37, 468 30,840 Ending retained earnings $45,486 $37,468 Required: Compute the following financial ratios for this year 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier (For all requirements, round your answers to 2 decimal places.) 1. 2. Times interest earned ratio Debt-to-equity ratio Equity multiplier

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

ISE Business Accounting

Authors: Frank Wood, Alan Sangster

8th Edition

0273638408, 9780273638407

More Books

Students also viewed these Accounting questions