Exercise 14-5 Financial Ratios for Assessing Profitability [LO14-5] 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 870,000 shares of common stock were outstanding. The nterest 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 rear and $0.40 this year. The market value of the company's common stock at the end of the year was $22. All of the company's sales are on account. Additional paid-in capital Total paid-in capital 5,4204,5505,4204,550 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings This Year Last Year $86,000$81,000 \begin{tabular}{rrr} 9,200 & & 8,700 \\ 12,700 & & 11,700 \\ \hline 21,900 & & 20,400 \\ \hline 8,600 & & 9,100 \end{tabular} 7,7009008,200900 4,6203,0804,9203,280 4,2723484,224696 $31,63227,360$27,36023,136 Required: Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3) ). 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 4. Return on equity. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)