Can you please help me answer number 3 listed on the screen shot? The financial statments are listed below. Thank you 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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $1.00 last year and $0.65 this year. The market value of the company’s common stock at the end of the year was $21. 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 $ 1,190 $ 1,290 Accounts receivable, net 9,400 7,200 Inventory 12,100 12,200 Prepaid expenses 800 560 Total current assets 23,490 21,250 Property and equipment: Land 11,000 11,000 Buildings and equipment, net 38,795 34,500 Total property and equipment 49,795 45,500 Total assets $ 73,285 $ 66,750 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19,400 $ 17,600 Accrued liabilities 960 790 Notes payable, short term 250 250 Total current liabilities 20,610 18,640 Long-term liabilities: Bonds payable 8,500 8,500 Total liabilities 29,110 27,140 Stockholders' equity: Common stock 500 500 Additional paid-in capital 4,000 4,000 Total paid-in capital 4,500 4,500 Retained earnings 39,675 35,110 Total stockholders' equity 44,175 39,610 Total liabilities and stockholders' equity $ 73,285 $ 66,750 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 67,000 $ 65,000 Cost of goods sold 40,000 39,000 Gross margin 27,000 26,000 Selling and administrative expenses: Selling expenses 11,000 10,700 Administrative expenses 7,000 6,500 Total selling and administrative expenses 18,000 17,200 Net operating income 9,000 8,800 Interest expense 850 850 Net income before taxes 8,150 7,950 Income taxes 3,260 3,180 Net income 4,890 4,770 Dividends to common stockholders 325 500 Net income added to retained earnings 4,565 4,270 Beginning retained earnings 35,110 30,840 Ending retained earnings $ 39,675 $ 35,110

Can you please help me answer number 3 listed on the screen shot? The financial statments are listed below. Thank you 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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $1.00 last year and $0.65 this year. The market value of the company’s common stock at the end of the year was $21. 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 $ 1,190 $ 1,290 Accounts receivable, net 9,400 7,200 Inventory 12,100 12,200 Prepaid expenses 800 560 Total current assets 23,490 21,250 Property and equipment: Land 11,000 11,000 Buildings and equipment, net 38,795 34,500 Total property and equipment 49,795 45,500 Total assets $ 73,285 $ 66,750 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19,400 $ 17,600 Accrued liabilities 960 790 Notes payable, short term 250 250 Total current liabilities 20,610 18,640 Long-term liabilities: Bonds payable 8,500 8,500 Total liabilities 29,110 27,140 Stockholders' equity: Common stock 500 500 Additional paid-in capital 4,000 4,000 Total paid-in capital 4,500 4,500 Retained earnings 39,675 35,110 Total stockholders' equity 44,175 39,610 Total liabilities and stockholders' equity $ 73,285 $ 66,750 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 67,000 $ 65,000 Cost of goods sold 40,000 39,000 Gross margin 27,000 26,000 Selling and administrative expenses: Selling expenses 11,000 10,700 Administrative expenses 7,000 6,500 Total selling and administrative expenses 18,000 17,200 Net operating income 9,000 8,800 Interest expense 850 850 Net income before taxes 8,150 7,950 Income taxes 3,260 3,180 Net income 4,890 4,770 Dividends to common stockholders 325 500 Net income added to retained earnings 4,565 4,270 Beginning retained earnings 35,110 30,840 Ending retained earnings $ 39,675 $ 35,110

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Can you please help me answer number 3 listed on the screen shot? The financial statments are listed below. Thank you

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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $1.00 last year and $0.65 this year. The market value of the company’s common stock at the end of the year was $21. 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	$	1,190	$	1,290
Accounts receivable, net		9,400		7,200
Inventory		12,100		12,200
Prepaid expenses		800		560

Total current assets		23,490		21,250

Property and equipment:
Land		11,000		11,000
Buildings and equipment, net		38,795		34,500

Total property and equipment		49,795		45,500

Total assets	$	73,285	$	66,750

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,400	$	17,600
Accrued liabilities		960		790
Notes payable, short term		250		250

Total current liabilities		20,610		18,640
Long-term liabilities:
Bonds payable		8,500		8,500

Total liabilities		29,110		27,140

Stockholders' equity:
Common stock		500		500
Additional paid-in capital		4,000		4,000

Total paid-in capital		4,500		4,500
Retained earnings		39,675		35,110

Total stockholders' equity		44,175		39,610

Total liabilities and stockholders' equity	$	73,285	$	66,750

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$	67,000	$	65,000
Cost of goods sold		40,000		39,000

Gross margin		27,000		26,000

Selling and administrative expenses:
Selling expenses		11,000		10,700
Administrative expenses		7,000		6,500

Total selling and administrative expenses		18,000		17,200

Net operating income		9,000		8,800
Interest expense		850		850

Net income before taxes		8,150		7,950
Income taxes		3,260		3,180

Net income		4,890		4,770
Dividends to common stockholders		325		500

Net income added to retained earnings		4,565		4,270
Beginning retained earnings		35,110		30,840

Ending retained earnings	$	39,675	$	35,110

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