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

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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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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 870,000 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 $21.50. All of the company's sales are on account. Required:Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.)2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.)3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.)4. Dividend yeild ratio. (Round your intermediate calculatioms and final answer to 2 decimal places.)5. Book value per share. (Round…
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 960,000 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 $26. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Weller Corporation Comparative Balance Sheet (dollars in thousands) Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total…
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 880,000 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 $22. All of the company’s sales are on account. Weller CorporationComparative Balance Sheet(dollars in thousands) This Year Last Year Assets Current assets: Cash $ 3,508 $ 4,340 Accounts receivable, net 15,200 10,150 Inventory 10,100 8,520 Prepaid expenses 1,880 2,260 Total current assets 30,688 25,270 Property and equipment: Land 6,800 6,800 Buildings and equipment, net 20,000 19,800 Total property and equipment 26,800 26,600 Total assets $ 57,488 $ 51,870…
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.)
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 800,000 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 $18. All of the company’s sales are on account. Weller CorporationComparative Balance Sheet(dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,280 $ 1,560 Accounts receivable, net 12,300 9,100 Inventory 9,700 8,200 Prepaid expenses 1,800 2,100 Total current assets 25,080 20,960 Property and equipment: Land 6,000 6,000 Buildings and equipment, net 19,200 19,000 Total…
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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 980,000 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 the year was $27.00. All of the company’s sales are on account. Weller CorporationComparative Balance Sheet(dollars in thousands) This Year Last Year Assets Current assets: Cash $ 4,568 $ 5,440 Accounts receivable, net 16,200 9,150 Inventory 10,600 8,920 Prepaid expenses 1,980 2,460 Total current assets 33,348 25,970 Property and equipment: Land 7,800 7,800 Buildings and equipment, net 21,000 20,800 Total…
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 930,000 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 $24.50. All of the company’s sales are on account. Required: Compute the following financial data for this year to fill the table: A. Earnings per share. (Round your answer to 2 decimal places.) B. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) C. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) D. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.) E. Book…
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 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 $25. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Weller Corporation Comparative Balance Sheet (dollars in thousands) Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total…
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 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 $23. All of the company’s sales are on account. Weller CorporationComparative Balance Sheet(dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,190 $ 1,240 Accounts receivable, net 9,300 6,800 Inventory 13,600 11,200 Prepaid expenses 710 600 Total current assets 24,800 19,840 Property and equipment: Land 10,000 10,000 Buildings and equipment, net 47,103 38,484 Total…
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. 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. Assets Current assets: Cash Weller Corporation Comparative Balance Sheet (dollars in thousands) Accounts receivable, net Inventory Prepaid expenses Total current assets. Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total…
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 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 the year was $21. All of the company’s sales are on account. Weller CorporationComparative Balance Sheet(dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,170 $ 1,280 Accounts receivable, net 9,300 7,500 Inventory 12,100 12,300 Prepaid expenses 720 610 Total current assets 23,290 21,690 Property and equipment: Land 9,900 9,900 Buildings and equipment, net 41,043 35,739 Total…