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 960,000 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 $ 2,036 $ 3,020 Accounts receivable, net 16,000 9,050 Inventory 10,500 8,840 Prepaid expenses 1,960 2,420 Total current assets 30,496 23,330 Property and equipment: Land 7,600 7,600 Buildings and equipment, net 20,800 20,600 Total property and equipment 28,400 28,200 Total assets $ 58,896 $ 51,530 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 11,100 $ 9,100 Accrued liabilities 920 1,500 Notes payable, short term 460 460 Total current liabilities 12,480 11,060 Long-term liabilities: Bonds payable 6,250 6,250 Total liabilities 18,730 17,310 Stockholders' equity: Common stock 960 960 Additional paid-in capital 5,000 5,000 Total paid-in capital 5,960 5,960 Retained earnings 34,206 28,260 Total stockholders' equity 40,166 34,220 Total liabilities and stockholders' equity $ 58,896 $ 51,530 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 95,000 $ 90,000 Cost of goods sold 60,000 56,000 Gross margin 35,000 34,000 Selling and administrative expenses: Selling expenses 10,100 9,600 Administrative expenses 13,600 12,600 Total selling and administrative expenses 23,700 22,200 Net operating income 11,300 11,800 Interest expense 750 750 Net income before taxes 10,550 11,050 Income taxes 4,220 4,420 Net income 6,330 6,630 Dividends to common stockholders 384 720 Net income added to retained earnings 5,946 5,910 Beginning retained earnings 28,260 22,350 Ending retained earnings $ 34,206 $ 28,260

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 960,000 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 $ 2,036 $ 3,020 Accounts receivable, net 16,000 9,050 Inventory 10,500 8,840 Prepaid expenses 1,960 2,420 Total current assets 30,496 23,330 Property and equipment: Land 7,600 7,600 Buildings and equipment, net 20,800 20,600 Total property and equipment 28,400 28,200 Total assets $ 58,896 $ 51,530 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 11,100 $ 9,100 Accrued liabilities 920 1,500 Notes payable, short term 460 460 Total current liabilities 12,480 11,060 Long-term liabilities: Bonds payable 6,250 6,250 Total liabilities 18,730 17,310 Stockholders' equity: Common stock 960 960 Additional paid-in capital 5,000 5,000 Total paid-in capital 5,960 5,960 Retained earnings 34,206 28,260 Total stockholders' equity 40,166 34,220 Total liabilities and stockholders' equity $ 58,896 $ 51,530 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 95,000 $ 90,000 Cost of goods sold 60,000 56,000 Gross margin 35,000 34,000 Selling and administrative expenses: Selling expenses 10,100 9,600 Administrative expenses 13,600 12,600 Total selling and administrative expenses 23,700 22,200 Net operating income 11,300 11,800 Interest expense 750 750 Net income before taxes 10,550 11,050 Income taxes 4,220 4,420 Net income 6,330 6,630 Dividends to common stockholders 384 720 Net income added to retained earnings 5,946 5,910 Beginning retained earnings 28,260 22,350 Ending retained earnings $ 34,206 $ 28,260

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please help me solve numbers 1,2,3 and 4 on the screen shot. And below are the financial statements. Thank you

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$	2,036	$	3,020
Accounts receivable, net		16,000		9,050
Inventory		10,500		8,840
Prepaid expenses		1,960		2,420

Total current assets		30,496		23,330

Property and equipment:
Land		7,600		7,600
Buildings and equipment, net		20,800		20,600

Total property and equipment		28,400		28,200

Total assets	$	58,896	$	51,530

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	11,100	$	9,100
Accrued liabilities		920		1,500
Notes payable, short term		460		460

Total current liabilities		12,480		11,060
Long-term liabilities:
Bonds payable		6,250		6,250

Total liabilities		18,730		17,310

Stockholders' equity:
Common stock		960		960
Additional paid-in capital		5,000		5,000

Total paid-in capital		5,960		5,960
Retained earnings		34,206		28,260

Total stockholders' equity		40,166		34,220

Total liabilities and stockholders' equity	$	58,896	$	51,530

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$	95,000	$	90,000
Cost of goods sold		60,000		56,000

Gross margin		35,000		34,000

Selling and administrative expenses:
Selling expenses		10,100		9,600
Administrative expenses		13,600		12,600

Total selling and administrative expenses		23,700		22,200

Net operating income		11,300		11,800
Interest expense		750		750

Net income before taxes		10,550		11,050
Income taxes		4,220		4,420

Net income		6,330		6,630
Dividends to common stockholders		384		720

Net income added to retained earnings		5,946		5,910
Beginning retained earnings		28,260		22,350

Ending retained earnings	$	34,206	$	28,260

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