Comparative financial statements for Weller Corporation, a trading company, for the year ending December 31...
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Accounting
Comparative financial statements for Weller Corporation, a trading company, for the year ending December 31 are shown below.
The company did not issue new common shares during the year. A total of 800,000 common shares were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per common share 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 $18. All company sales are on account.
Weller Corporation Comparative Balance Sheet (dollars in thousands) | ||||||
This year | Last year | |||||
Assets | ||||||
Current assets: | ||||||
Money | ps | 1,280 | ps | 1,560 | ||
Accounts receivable, net | 12,300 | 9,100 | ||||
Inventory | 9,700 | 8,200 | ||||
Prepaid expenses | 1,800 | 2100 | ||||
Total current assets | 25,080 | 20,960 | ||||
Property and equipment: | ||||||
Tierra | 6,000 | 6,000 | ||||
Buildings and equipment, net | 19,200 | 19,000 | ||||
Total properties and equipment | 25,200 | 25,000 | ||||
total assets | ps | 50,280 | ps | 45,960 | ||
Liabilities and Equity | ||||||
current liabilities: | ||||||
Accounts payable | ps | 9,500 | ps | 8,300 | ||
Accrued Obligations | 600 | 700 | ||||
Short-term notes payable | 300 | 300 | ||||
Total current liabilities | 10,400 | 9,300 | ||||
Long term passives: | ||||||
Obligations with the public | 5,000 | 5,000 | ||||
Full responsibility | 15,400 | 14,300 | ||||
Equity: | ||||||
Common actions | 800 | 800 | ||||
Additional payment in principal | 4200 | 4200 | ||||
Total paid up capital | 5,000 | 5,000 | ||||
Retained earnings | 29,880 | 26,660 | ||||
Equity of total shareholders | 34,880 | 31,660 | ||||
Total liabilities and stockholders' equity | ps | 50,280 | ps | 45,960 | ||
Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) | ||||||
This year | Last year | |||||
Sales | ps | 79,000 | ps | 74.000 | ||
cost of goods sold | 52,000 | 48,000 | ||||
Gross margin | 27,000 | 26,000 | ||||
Selling and administration expenses: | ||||||
selling expenses | 8,500 | 8,000 | ||||
administrative expenses | 12,000 | 11,000 | ||||
Total selling and administrative expenses | 20.500 | 19,000 | ||||
operating margin | 6,500 | 7,000 | ||||
Interest expenses | 600 | 600 | ||||
Net income before taxes | 5,900 | 6,400 | ||||
Income taxes | 2,360 | 2,560 | ||||
Net Income | 3,540 | 3,840 | ||||
Dividends to common shareholders | 320 | 600 | ||||
Net income added to retained earnings | 3,220 | 3,240 | ||||
Initial retained earnings | 26,660 | 23,420 | ||||
End of Retained Earnings | ps | 29,880 | ps | 26,660 | ||
Required
1. Percentage of gross margin.
2. Percentage of net profit margin.
3. Return on total assets.
4. Return on own resources.
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