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parative financial statements for Weller Corporation, a merchandising company, for the year ending mber 31 appear below. The company did not issue any new common stock during the year. A total of 00 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their value, was 12%. The income tax rate was 40% and the dividend per share of common stock was $0.40 rear. The market value of the company's common stock at the end of the year was $19. All of the any's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year ets rent assets: ash ccounts receivable, net ventory $ 3,812 12,500 9,800 $ 3,980 9,200 8,280

parative financial statements for Weller Corporation, a merchandising company, for the year ending mber 31 appear below. The company did not issue any new common stock during the year. A total of 00 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their value, was 12%. The income tax rate was 40% and the dividend per share of common stock was $0.40 rear. The market value of the company's common stock at the end of the year was $19. All of the any's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year ets rent assets: ash ccounts receivable, net ventory $ 3,812 12,500 9,800 $ 3,980 9,200 8,280

FINANCIAL ACCOUNTING
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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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 820,000 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 $19. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 3,980 Cash Accounts receivable, net Inventory Prepaid expenses $ 3,812 12,500 9,800 1,820 9,200 8,280 2,140 Total current assets 27,932 23,600 Property and equipment: Land 6,200 19,400 6,200 Buildings and equipment, net 19,200 Total property and equipment 25,600 25,400 Total assets $53,532 $49,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities $ 9,700 640 $ 8,400 800 Notes payable, short term 320 320 Total current liabilities 10,660 9,520 Long-term liabilities: Bonds payable 7,500 7,500 Total liabilities 18,160 17,020 Stockholders' equity: Common stock Additional paid-in capital 820 820 4,300 4,300 Total paid-in capital Retained earnings 5,120 30,252 5,120 26,860 Total stockholders' equity 35,372 31,980 Total liabilities and stockholders' equity $53,532 $49,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $81,000 53,000 Sales Cost of goods sold $76,000 49,000 Gross margin 28,000 27,000 Selling and administrative expenses: Selling expenses Administrative expenses 8,700 12,200 8,200 11,200 Total selling and administrative expenses 20,900 19,400 7,100 Net operating income Interest expense 7,600 900 900 6,200 2,480 Net income before taxes 6,700 2,680 Income taxes Net income 3,720 4,020 Dividends to common stockholders 328 615 Net income added to retained earnings 3,392 26,860 3,405 23,455 Beginning retained earnings Ending retained earnings $30,252 $26,860 Doguirod:
Transcribed Image Text: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 820,000 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 $19. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 3,980 Cash Accounts receivable, net Inventory Prepaid expenses $ 3,812 12,500 9,800 1,820 9,200 8,280 2,140 Total current assets 27,932 23,600 Property and equipment: Land 6,200 19,400 6,200 Buildings and equipment, net 19,200 Total property and equipment 25,600 25,400 Total assets $53,532 $49,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities $ 9,700 640 $ 8,400 800 Notes payable, short term 320 320 Total current liabilities 10,660 9,520 Long-term liabilities: Bonds payable 7,500 7,500 Total liabilities 18,160 17,020 Stockholders' equity: Common stock Additional paid-in capital 820 820 4,300 4,300 Total paid-in capital Retained earnings 5,120 30,252 5,120 26,860 Total stockholders' equity 35,372 31,980 Total liabilities and stockholders' equity $53,532 $49,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $81,000 53,000 Sales Cost of goods sold $76,000 49,000 Gross margin 28,000 27,000 Selling and administrative expenses: Selling expenses Administrative expenses 8,700 12,200 8,200 11,200 Total selling and administrative expenses 20,900 19,400 7,100 Net operating income Interest expense 7,600 900 900 6,200 2,480 Net income before taxes 6,700 2,680 Income taxes Net income 3,720 4,020 Dividends to common stockholders 328 615 Net income added to retained earnings 3,392 26,860 3,405 23,455 Beginning retained earnings Ending retained earnings $30,252 $26,860 Doguirod:
Required: Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Gross margin percentage 34.6 % 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Net profit margin percentage 4.6 % 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on total assets 6.9 % 4. Return on equity. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Return on equity 10.50 %
Transcribed Image Text:Required: Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Gross margin percentage 34.6 % 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Net profit margin percentage 4.6 % 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on total assets 6.9 % 4. Return on equity. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Return on equity 10.50 %
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