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 yearLast year
Assets





Current assets:





Moneyps1,280
ps1,560
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 assetsps50,280
ps45,960
Liabilities and Equity





current liabilities:





Accounts payableps9,500
ps8,300
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' equityps50,280
ps45,960


Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)

This yearLast year
Salesps79,000
ps74.000
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 Earningsps29,880
ps26,660


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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