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 700,000 shares of common stock were outstanding. Theinterest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 lastyear and $0.40 this year. The market value of the company's common stock at the end of this year was $24. All of the company's salesare on account,Weller CorporationComparative Balance Sheet(dollars in thousands)This Year Last YearAssetsCurrent assets:$ 1,1109,80013,100620$ 1,3208,30012, 200CashAccounts receivable, netInventoryPrepaid expenses540Total current assets24,63022,360Property and equipment:10,60045,26355,863$ 80,49310,60035,63946,239$ 68,599LandBuildings and equipment, netTotal property and equipmentTotal assetsLiabilities and Stockholders' EquityCurrent liabilities:Accounts payableAccrued liabilitiesNotes payable, short term$ 18,800990$ 18,100760210Total current liabilities19,79019,070Long-term liabilities:Bonds payable8,10027,8908,10027,170Total liabilitiesStockholders' equity:2,0004,0006,00035,42941,429$ 68,599Common stock2,0004,0006,00046,60352,603$ 80,493Additional paid-in capitalTotal paid-in capitalRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equity Weller CorporationComparative Income Statement and Reconciliation(dollars in thousands)This Year$ 75,00037,00038,000Last Year$ 65,00039,00026,000SalesCost of goods soldGross marginSelling and administrative expenses:Selling expensesAdministrative expenses11,1007,00018,10019,90081010,9006,10017,0009,000810Total selling and administrative expensesNet operating incomeInterest expenseNet income before taxes19,0907,63611,4548,1903,2764,914525Income taxesNet incomeDividends to common stockholders280Net income added to retained earningsBeginning retained earnings11,17435,429$ 46,6034,38931,040$ 35,429Ending retained earningsRequired:Compute the following financial ratios for this year:1. Times interest earned ratio.2. Debt-to-equity ratio.3. Equity multiplier.(For all requirements, round your answers to 2 decimal places.)1. Times interest earned ratio2. Debt-to-equity ratio3. Equity multiplier

Ratio Analysis- Ratio analysis is a mathematical tool for calculating a company's liquidity,…

omparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. he company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The terest 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 ear and $0.40 this year. The market value of the company's common stock at the end of this year was $24. All of the company's sales e on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 1,110 9,800 13,100 620 $ 1,320 8,300 12, 200 540 22,360 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 24,630 Property and equipment: Land Buildings and equipment, net Total property and equipment 10,600 45,263 55,863 10,600 35,639 46,239

omparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. he company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The terest 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 ear and $0.40 this year. The market value of the company's common stock at the end of this year was $24. All of the company's sales e on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 1,110 9,800 13,100 620 $ 1,320 8,300 12, 200 540 22,360 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 24,630 Property and equipment: Land Buildings and equipment, net Total property and equipment 10,600 45,263 55,863 10,600 35,639 46,239

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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