Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31...
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Accounting
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 810,000 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 companys common stock at the end of this year was $18.50. All of the companys sales are on account.
Weller Corporation Comparative Balance Sheet (dollars in thousands) | ||||||
This Year | Last Year | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 2,546 | $ | 2,770 | ||
Accounts receivable, net | 12,400 | 9,150 | ||||
Inventory | 9,750 | 8,240 | ||||
Prepaid expenses | 1,810 | 2,120 | ||||
Total current assets | 26,506 | 22,280 | ||||
Property and equipment: | ||||||
Land | 6,100 | 6,100 | ||||
Buildings and equipment, net | 19,300 | 19,100 | ||||
Total property and equipment | 25,400 | 25,200 | ||||
Total assets | $ | 51,906 | $ | 47,480 | ||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 9,600 | $ | 8,350 | ||
Accrued liabilities | 620 | 750 | ||||
Notes payable, short term | 310 | 310 | ||||
Total current liabilities | 10,530 | 9,410 | ||||
Long-term liabilities: | ||||||
Bonds payable | 6,250 | 6,250 | ||||
Total liabilities | 16,780 | 15,660 | ||||
Stockholders' equity: | ||||||
Common stock | 810 | 810 | ||||
Additional paid-in capital | 4,250 | 4,250 | ||||
Total paid-in capital | 5,060 | 5,060 | ||||
Retained earnings | 30,066 | 26,760 | ||||
Total stockholders' equity | 35,126 | 31,820 | ||||
Total liabilities and stockholders' equity | $ | 51,906 | $ | 47,480 | ||
Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) | ||||||
This Year | Last Year | |||||
Sales | $ | 80,000 | $ | 75,000 | ||
Cost of goods sold | 52,500 | 48,500 | ||||
Gross margin | 27,500 | 26,500 | ||||
Selling and administrative expenses: | ||||||
Selling expenses | 8,600 | 8,100 | ||||
Administrative expenses | 12,100 | 11,100 | ||||
Total selling and administrative expenses | 20,700 | 19,200 | ||||
Net operating income | 6,800 | 7,300 | ||||
Interest expense | 750 | 750 | ||||
Net income before taxes | 6,050 | 6,550 | ||||
Income taxes | 2,420 | 2,620 | ||||
Net income | 3,630 | 3,930 | ||||
Dividends to common stockholders | 324 | 648 | ||||
Net income added to retained earnings | 3,306 | 3,282 | ||||
Beginning retained earnings | 26,760 | 23,478 | ||||
Ending retained earnings | $ | 30,066 | $ | 26,760 |
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