Exercise 16-3 (Algo) Financial Ratios for Asset Management [LO16-3] 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 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, 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 $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: $ 1,100 9,100 13,600 Cash $ 1,270 Accounts receivable, net 7,800 11,400 510 Inventory Prepaid expenses 640 Total current assets 24,440 20,980 Property and equipment: 10,100 51,805 61,905 $ 86,345 Land 10,100 Buildings and equipment, net Total property and equipment 41,062 51,162 $ 72,142 Total assets Liabilities and Stockholders' Equity Current liabilities: $ 19,900 $ 19,000 Accounts payable Accrued liabilities 980 790 180 180 Notes payable, short term Total current liabilities 21,060 19,970 Long-term liabilities: Bonds payable 9,300 9,300 Total liabilities 30,360 29,270 Stockholders' equity: Common stock 600 600 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 4,000 4,000 4,600 51,385 4,600 38,272 42,872 55,985 Total liabilities and stockholders' equity $ 86,345 $ 72,142
Exercise 16-3 (Algo) Financial Ratios for Asset Management [LO16-3] 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 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, 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 $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: $ 1,100 9,100 13,600 Cash $ 1,270 Accounts receivable, net 7,800 11,400 510 Inventory Prepaid expenses 640 Total current assets 24,440 20,980 Property and equipment: 10,100 51,805 61,905 $ 86,345 Land 10,100 Buildings and equipment, net Total property and equipment 41,062 51,162 $ 72,142 Total assets Liabilities and Stockholders' Equity Current liabilities: $ 19,900 $ 19,000 Accounts payable Accrued liabilities 980 790 180 180 Notes payable, short term Total current liabilities 21,060 19,970 Long-term liabilities: Bonds payable 9,300 9,300 Total liabilities 30,360 29,270 Stockholders' equity: Common stock 600 600 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 4,000 4,000 4,600 51,385 4,600 38,272 42,872 55,985 Total liabilities and stockholders' equity $ 86,345 $ 72,142
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
I need 4 to 6 please
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education