Homework Help is Here – Start Your Trial Now!
Business
Accounting
Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $89,000 57,000 32,000 Sales $84,000 Cost of goods sold Gross margin 53,000 31,000 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income 9,500 13,000 22,500 9,000 12,000 21,000 9,500 10,000 Interest expense 600 600 8,900 3,560 5,340 Net income before taxes 9,400 3,760 5,640 Income taxes Net income Dividends to common stockholders 360 720 Net income added to retained earnings Beginning retained earnings 4,980 27,660 4,920 22,740 Ending retained earnings $32,640 $27,660

Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $89,000 57,000 32,000 Sales $84,000 Cost of goods sold Gross margin 53,000 31,000 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income 9,500 13,000 22,500 9,000 12,000 21,000 9,500 10,000 Interest expense 600 600 8,900 3,560 5,340 Net income before taxes 9,400 3,760 5,640 Income taxes Net income Dividends to common stockholders 360 720 Net income added to retained earnings Beginning retained earnings 4,980 27,660 4,920 22,740 Ending retained earnings $32,640 $27,660

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
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 900,000 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 $23. All of the company's sales are on account.

Required:
Compute the following financial data for this year:

1. Gross margin percentage. (Round your percentage answer to 1 decimal place.)
2. Net profit margin percentage. (Round your percentage answer to 1 decimal place.)
3. Return on total assets. (Round your percentage answer to 1 decimal place.)
4. Return on equity. (Round your percentage answer to 2 decimal places.)

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash 240 510 15,400 10,200 1,900 27,740 Accounts receivable, net 10,250 8,600 2,300 Inventory Prepaid expenses Total current assets 21,660 Property and equipment: Land 7,000 7,000 20,000 Buildings and equipment, net 20,200 Total property and equipment 27,200 27,000 Total assets $54,940 $48,660 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $10,500 $ 8,800 Accrued liabilities 800 1,200 Notes payable, short term 400 400 Total current liabilities 11,700 10,400 Long-term liabilities: Bonds payable 5,000 5,000 Total liabilities 16,700 15,400 Stockholders' equity: Common stock 900 900 Additionall paid-in capital Total paid-in capital 4,700 5,600 4,700 5,600 Retained earnings 32,640 27,660 Total stockholders' equity 38,240 33,260 Total liabilities and stockholders' equity $54,940 $48,660
Transcribed Image Text:Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash 240 510 15,400 10,200 1,900 27,740 Accounts receivable, net 10,250 8,600 2,300 Inventory Prepaid expenses Total current assets 21,660 Property and equipment: Land 7,000 7,000 20,000 Buildings and equipment, net 20,200 Total property and equipment 27,200 27,000 Total assets $54,940 $48,660 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $10,500 $ 8,800 Accrued liabilities 800 1,200 Notes payable, short term 400 400 Total current liabilities 11,700 10,400 Long-term liabilities: Bonds payable 5,000 5,000 Total liabilities 16,700 15,400 Stockholders' equity: Common stock 900 900 Additionall paid-in capital Total paid-in capital 4,700 5,600 4,700 5,600 Retained earnings 32,640 27,660 Total stockholders' equity 38,240 33,260 Total liabilities and stockholders' equity $54,940 $48,660
Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $89,000 Sales $84,000 Cost of goods sold 57,000 53,000 Gross margin 32,000 31,000 Selling and administrative expenses: Selling expenses Administrative expenses 9,500 13,000 9,000 12,000 21,000 10,000 22,500 Total selling and administrative expenses Net operating income 9,500 Interest expense 600 600 Net income before taxes 8,900 3,560 9,400 3,760 5,640 Income taxes 5,340 360 Net income Dividends to common stockholders Net income added to retained earnings 720 4,920 4,980 27,660 Beginning retained earnings 22,740 Ending retained earnings $32,640 $27,660
Transcribed Image Text:Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $89,000 Sales $84,000 Cost of goods sold 57,000 53,000 Gross margin 32,000 31,000 Selling and administrative expenses: Selling expenses Administrative expenses 9,500 13,000 9,000 12,000 21,000 10,000 22,500 Total selling and administrative expenses Net operating income 9,500 Interest expense 600 600 Net income before taxes 8,900 3,560 9,400 3,760 5,640 Income taxes 5,340 360 Net income Dividends to common stockholders Net income added to retained earnings 720 4,920 4,980 27,660 Beginning retained earnings 22,740 Ending retained earnings $32,640 $27,660
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Segment Reporting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS