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 970,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 12%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the year was $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 3,302 4,230 9,100 8,880 2,440 31,922 24,650 16,100 10,550 1,970 Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: 7,700 7,700 20.900 20,700 28,60028 400_ $60,522 $53,050 Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities $11,200 $ 9,150 1,550 470 11,170 Accounts payable 940 470 12,610 Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: 7,500 Bonds payable Total liabilities 7,500 20,110 18,670 stockholders' equity: 970 5,050 6,020 34,392 970 5, 050 6,020 28,360 Common stock Additional paid-in capital Total paid-in capita.l Retained earnings Total stockholders equity Total liabilities and stockholders' equity 40,412 34,380_ $60,522 $53,050

Explanation / Answer

Answer:

1

Earnings per share

=Net income- preffered Devided / Avearge Number of common share outstanding

=6420-0 / 970

=$6.62

_______________________________________

2

Price earning Ratio

=Markate price per share / earning per share

=24 /6.62

=3.63

______________________________________

3

Dividend pay out ratio

=Dividend per share / earning per share

=0.40 /6.62

=6.04%

______________________________________

4

Dvidend Yeild ratio

==Dividend per share / Markate per share

=0.40/ 24

=1.67%

_________________________________

5

Book value per share

=(total stock holder's equity -preferred stock) /Number of common share outstanding

=(40412-0) /970

=40412 /970

=41.66

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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