3 Print Exercise 16-6 (Algo) Financial Ratios for Assessing Market Performance [LO16-6] Comparative financial statements for...

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3 Print Exercise 16-6 (Algo) Financial Ratios for Assessing Market Performance [LO16-6] 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 890,000 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 $22.50. 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 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 liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity) Total liabilities and stockholders' equity $ 4,774 $ 5,550 15,300 10,150 10,200 8,560 1,890 2,280 32,114 26,590 6,900 6,900 20,100 19,900 27,000 26,800 $ 59,114 $53,398 $ 10,400 $8,750 780 1,150 390 390 11,570 10,290 10,000 10,000 21,570 20,290 890 890 4,650 4,650 5,540 5,540 32,004 27,560 37,544 33,100 $ 59,114 $ 53,390 3 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 88,000 $ 83,000 Cost of goods sold 56,500 52,500 Gross margin 31,500 30,500 Selling expenses Selling and administrative expenses: Administrative expenses 9,400 8,900 12,900 11,900 Print Total selling and administrative expenses 22,300 20,800 Net operating income 9,200 9,700 Interest expense 1,200 1,200 Net income before taxes 8,000 8,500 Income taxes 3,200 3,400 4,800 5,100 356 712 4,444 4,388 27,560 23,172 $ 32,004 $ 27,560 Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 1. Earnings per share. Note: Round your answer to 2 decimal places. 2. Price-earnings ratio. Note: Round your intermediate calculations and final answer to 2 decimal places. 3. Dividend payout ratio. Note: Round your intermediate calculations and final answer to 2 decimal places. 4. Dividend yield ratio. Note: Round your intermediate calculations and final answer to 2 decimal places. 5. Book value per share. Note: Round your answer to 2 decimal places. 1. Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio % 4. Dividend yield ratio % 5. Book value per share 3 Print Exercise 16-6 (Algo) Financial Ratios for Assessing Market Performance [LO16-6] 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 890,000 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 $22.50. 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 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 liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity) Total liabilities and stockholders' equity $ 4,774 $ 5,550 15,300 10,150 10,200 8,560 1,890 2,280 32,114 26,590 6,900 6,900 20,100 19,900 27,000 26,800 $ 59,114 $53,398 $ 10,400 $8,750 780 1,150 390 390 11,570 10,290 10,000 10,000 21,570 20,290 890 890 4,650 4,650 5,540 5,540 32,004 27,560 37,544 33,100 $ 59,114 $ 53,390 3 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 88,000 $ 83,000 Cost of goods sold 56,500 52,500 Gross margin 31,500 30,500 Selling expenses Selling and administrative expenses: Administrative expenses 9,400 8,900 12,900 11,900 Print Total selling and administrative expenses 22,300 20,800 Net operating income 9,200 9,700 Interest expense 1,200 1,200 Net income before taxes 8,000 8,500 Income taxes 3,200 3,400 4,800 5,100 356 712 4,444 4,388 27,560 23,172 $ 32,004 $ 27,560 Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 1. Earnings per share. Note: Round your answer to 2 decimal places. 2. Price-earnings ratio. Note: Round your intermediate calculations and final answer to 2 decimal places. 3. Dividend payout ratio. Note: Round your intermediate calculations and final answer to 2 decimal places. 4. Dividend yield ratio. Note: Round your intermediate calculations and final answer to 2 decimal places. 5. Book value per share. Note: Round your answer to 2 decimal places. 1. Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio % 4. Dividend yield ratio % 5. Book value per share