Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...
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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 990,000 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 $27.50. 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 $ 5,834 $ 6,650 16,300 9,200 10,650 8,960 1,990 2,480 34,774 27,290 7,900 7,900 21,100 20,900 29,000 28,800 $ 63,774 $ 56,090 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 Weller Corporation $ 11,400 980 490 $ 9,250 1,650 490 12,870 11,390 10,000 10,000 22,870 21,390 990 990 5,150 5,150 6,140 6,140 34,764 28,560 40,904 34,700 $ 63,774 $ 56,090 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 98,000 $ 93,000 Cost of goods sold 61,500 57,500 Gross margin 36,500 35,500 Selling and administrative expenses: Selling expenses Administrative expenses 10,400 9,900 13,900 12,900 Total selling and administrative expenses 24,300 22,800 Net operating income 12,200 12,700 Interest expense 1,200 1,200 Net income before taxes 11,000 11,500 Income taxes 4,400 4,600 Net income 6,600 6,900 Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 396 792 6,204 28,560 $ 34,764 6,108 22,452 $ 28,560 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 990,000 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 $27.50. 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 $ 5,834 $ 6,650 16,300 9,200 10,650 8,960 1,990 2,480 34,774 27,290 7,900 7,900 21,100 20,900 29,000 28,800 $ 63,774 $ 56,090 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 Weller Corporation $ 11,400 980 490 $ 9,250 1,650 490 12,870 11,390 10,000 10,000 22,870 21,390 990 990 5,150 5,150 6,140 6,140 34,764 28,560 40,904 34,700 $ 63,774 $ 56,090 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 98,000 $ 93,000 Cost of goods sold 61,500 57,500 Gross margin 36,500 35,500 Selling and administrative expenses: Selling expenses Administrative expenses 10,400 9,900 13,900 12,900 Total selling and administrative expenses 24,300 22,800 Net operating income 12,200 12,700 Interest expense 1,200 1,200 Net income before taxes 11,000 11,500 Income taxes 4,400 4,600 Net income 6,600 6,900 Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 396 792 6,204 28,560 $ 34,764 6,108 22,452 $ 28,560
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Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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