Comparative financial statements for Weller Corporation, a merchandising company
ID: 2499199 • Letter: C
Question
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 1,000,000 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 company’s common stock at the end of the year was $28.00. All of the company’s sales are on account.
Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
Return on equity. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)
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 1,000,000 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 company’s common stock at the end of the year was $28.00. All of the company’s sales are on account.
Explanation / Answer
Answer:1 Gross margin percentage=(Gross Profit/Net sales)*100
=($37000/$99000)*100=37.4%
Answer:2 Net profit margin percentage=(Net Profit/Net sales)*100
=($7140/$99000)*100=7.2%
Answer:3 Return on total assets=(Net income/Average Total Asset)*100
=[($7140/[($59600+$51360)/2]]*100
=($7140/$55480)*100
=12.9%
Answer:4 Return on equity=(Net income/Average Stockholder's equity)*100
=($7140/[(41,600+34860)/2])*100
=($7140/$38230)*100
=18.7%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.