Please help me solve 1,2 and 3 on the screen shot. Below are the financial statments. Thank you 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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. 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 $21. 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 $ 1,110 $ 1,350 Accounts receivable, net 9,600 6,800 Inventory 13,300 11,900 Prepaid expenses 660 500 Total current assets 24,670 20,550 Property and equipment: Land 10,700 10,700 Buildings and equipment, net 47,341 40,133 Total property and equipment 58,041 50,833 Total assets $ 82,711 $ 71,383 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 18,800 $ 19,300 Accrued liabilities 1,040 830 Notes payable, short term 0 230 Total current liabilities 19,840 20,360 Long-term liabilities: Bonds payable 8,200 8,200 Total liabilities 28,040 28,560 Stockholders' equity: Common stock 2,000 2,000 Additional paid-in capital 4,000 4,000 Total paid-in capital 6,000 6,000 Retained earnings 48,671 36,823 Total stockholders' equity 54,671 42,823 Total liabilities and stockholders' equity $ 82,711 $ 71,383 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 75,000 $ 64,000 Cost of goods sold 36,000 35,000 Gross margin 39,000 29,000 Selling and administrative expenses: Selling expenses 10,800 11,000 Administrative expenses 7,300 6,500 Total selling and administrative expenses 18,100 17,500 Net operating income 20,900 11,500 Interest expense 820 820 Net income before taxes 20,080 10,680 Income taxes 8,032 4,272 Net income 12,048 6,408 Dividends to common stockholders 200 625 Net income added to retained earnings 11,848 5,783 Beginning retained earnings 36,823 31,040 Ending retained earnings $ 48,671 $ 36,823
Please help me solve 1,2 and 3 on the screen shot. Below are the financial statments. Thank you 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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. 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 $21. 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 $ 1,110 $ 1,350 Accounts receivable, net 9,600 6,800 Inventory 13,300 11,900 Prepaid expenses 660 500 Total current assets 24,670 20,550 Property and equipment: Land 10,700 10,700 Buildings and equipment, net 47,341 40,133 Total property and equipment 58,041 50,833 Total assets $ 82,711 $ 71,383 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 18,800 $ 19,300 Accrued liabilities 1,040 830 Notes payable, short term 0 230 Total current liabilities 19,840 20,360 Long-term liabilities: Bonds payable 8,200 8,200 Total liabilities 28,040 28,560 Stockholders' equity: Common stock 2,000 2,000 Additional paid-in capital 4,000 4,000 Total paid-in capital 6,000 6,000 Retained earnings 48,671 36,823 Total stockholders' equity 54,671 42,823 Total liabilities and stockholders' equity $ 82,711 $ 71,383 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 75,000 $ 64,000 Cost of goods sold 36,000 35,000 Gross margin 39,000 29,000 Selling and administrative expenses: Selling expenses 10,800 11,000 Administrative expenses 7,300 6,500 Total selling and administrative expenses 18,100 17,500 Net operating income 20,900 11,500 Interest expense 820 820 Net income before taxes 20,080 10,680 Income taxes 8,032 4,272 Net income 12,048 6,408 Dividends to common stockholders 200 625 Net income added to retained earnings 11,848 5,783 Beginning retained earnings 36,823 31,040 Ending retained earnings $ 48,671 $ 36,823
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me solve 1,2 and 3 on the screen shot. Below are the financial statments. Thank you
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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. 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 $21. All of the company’s sales are on account. |
Weller Corporation Comparative (dollars in thousands) |
||||||
This Year | Last Year | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 1,110 | $ | 1,350 | ||
|
9,600 | 6,800 | ||||
Inventory | 13,300 | 11,900 | ||||
Prepaid expenses | 660 | 500 | ||||
Total current assets | 24,670 | 20,550 | ||||
Property and equipment: | ||||||
Land | 10,700 | 10,700 | ||||
Buildings and equipment, net | 47,341 | 40,133 | ||||
Total property and equipment | 58,041 | 50,833 | ||||
Total assets | $ | 82,711 | $ | 71,383 | ||
Liabilities and |
||||||
Current liabilities: | ||||||
Accounts payable | $ | 18,800 | $ | 19,300 | ||
Accrued liabilities | 1,040 | 830 | ||||
Notes payable, short term | 0 | 230 | ||||
Total current liabilities | 19,840 | 20,360 | ||||
Long-term liabilities: | ||||||
Bonds payable | 8,200 | 8,200 | ||||
Total liabilities | 28,040 | 28,560 | ||||
Stockholders' equity: | ||||||
Common stock | 2,000 | 2,000 | ||||
Additional paid-in capital | 4,000 | 4,000 | ||||
Total paid-in capital | 6,000 | 6,000 | ||||
|
48,671 | 36,823 | ||||
Total stockholders' equity | 54,671 | 42,823 | ||||
Total liabilities and stockholders' equity | $ | 82,711 | $ | 71,383 | ||
Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) |
||||||
This Year | Last Year | |||||
Sales | $ | 75,000 | $ | 64,000 | ||
Cost of goods sold | 36,000 | 35,000 | ||||
Gross margin | 39,000 | 29,000 | ||||
Selling and administrative expenses: | ||||||
Selling expenses | 10,800 | 11,000 | ||||
Administrative expenses | 7,300 | 6,500 | ||||
Total selling and administrative expenses | 18,100 | 17,500 | ||||
Net operating income | 20,900 | 11,500 | ||||
Interest expense | 820 | 820 | ||||
Net income before taxes | 20,080 | 10,680 | ||||
Income taxes | 8,032 | 4,272 | ||||
Net income | 12,048 | 6,408 | ||||
Dividends to common stockholders | 200 | 625 | ||||
Net income added to retained earnings | 11,848 | 5,783 | ||||
Beginning retained earnings | 36,823 | 31,040 | ||||
Ending retained earnings | $ | 48,671 | $ | 36,823 | ||
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