Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 | 10,700 | 9,000 | ||||
Prepaid expenses | 2,000 | 2,500 | ||||
Total current assets | 30,400 | 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 | $ | 51,360 | ||
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 | 18,000 | 16,500 | ||||
Stockholders' equity: | ||||||
Common 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 | 41,600 | 34,860 | ||||
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 intermediate calculations and final 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started