Comparative financial statements for Weller Corporation, a merchandising company

Question

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 990,000 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 $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $28. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) points This Year Last Year Assets Current assets: Cash 16,300 10,650 1,990 34,774 5,834 6,650 9,200 8,960 2,480 27,290 cBook Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: References 7,900 21,100 7,900 20,900 29,000 28,800 $63,774 $56,090 Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: $11,400 $9,250 1,650 490 11,390 Accounts payable 980 490 12,870 Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: 10,000 Bonds payable Total liabilities 10,000 22,870 21,390 Stockholders' equity: 990 5,150 6,140 34,764 990 5,150 6,140 28,560 Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 40,904 34,700 $63,774 56,090 Total liabilities and stockholders' equity

Explanation / Answer

1) Gross margin percentage = 36500*100/98000 = 37.2%

2) Net profit margin percentage = 6600*100/98000 = 6.7%

3) Return on total assets = (6600+720)*100/59932 = 12.2%

4) Return on equity = 6600*100/37802 = 17.46%

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.