Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December...
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Accounting
Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 870,000 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 $0.40. The market value of the companys common stock at the end of the year was $21.50. All of the companys sales are on account. |
Weller Corporation Comparative Balance Sheet (dollars in thousands) | ||||||
This Year | Last Year | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 2,242 | $ | 3,130 | ||
Accounts receivable, net | 15,100 | 10,100 | ||||
Inventory | 10,050 | 8,480 | ||||
Prepaid expenses | 1,870 | 2,240 | ||||
Total current assets | 29,262 | 23,950 | ||||
Property and equipment: | ||||||
Land | 6,700 | 6,700 | ||||
Buildings and equipment, net | 19,900 | 19,700 | ||||
Total property and equipment | 26,600 | 26,400 | ||||
Total assets | $ | 55,862 | $ | 50,350 | ||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 10,200 | $ | 8,650 | ||
Accrued liabilities | 740 | 1,050 | ||||
Notes payable, short term | 370 | 370 | ||||
Total current liabilities | 11,310 | 10,070 | ||||
Long-term liabilities: | ||||||
Bonds payable | 7,500 | 7,500 | ||||
Total liabilities | 18,810 | 17,570 | ||||
Stockholders' equity: | ||||||
Common stock | 870 | 870 | ||||
Additional paid-in capital | 4,550 | 4,550 | ||||
Total paid-in capital | 5,420 | 5,420 | ||||
Retained earnings | 31,632 | 27,360 | ||||
Total stockholders' equity | 37,052 | 32,780 | ||||
Total liabilities and stockholders' equity | $ | 55,862 | $ | 50,350 | ||
Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) | ||||||
This Year | Last Year | |||||
Sales | $ | 86,000 | $ | 81,000 | ||
Cost of goods sold | 55,500 | 51,500 | ||||
Gross margin | 30,500 | 29,500 | ||||
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Selling and administrative expenses: | ||||||
Selling expenses | 9,200 | 8,700 | ||||
Administrative expenses | 12,700 | 11,700 | ||||
Total selling and administrative expenses | 21,900 | 20,400 | ||||
Net operating income | 8,600 | 9,100 | ||||
Interest expense | 900 | 900 | ||||
Net income before taxes | 7,700 | 8,200 | ||||
Income taxes | 3,080 | 3,280 | ||||
Net income | 4,620 | 4,920 | ||||
Dividends to common stockholders | 348 | 348 | ||||
Net income added to retained earnings | 4,272 | 4,572 | ||||
Beginning retained earnings | 27,360 | 22,788 | ||||
Ending retained earnings | $ | 31,632 | $ | 27,360 | ||
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.) |
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