Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...
Fantastic news! We've Found the answer you've been seeking!
Question:
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 840,000 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 $20. 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 9,300 8,360 $ 6,344 12,700 $ 6,400 9,900 1,840 2,180 30,784 26,240 6,400 6,400 19,600 19,400 26,000 25,800 $ 56,784 $ 52,040 $ 9,900 $ 8,500 680 900 340 340 10,920 9,740 10,000 10,000 20,920 19,740 840 840 4,400 4,400 Total paid-in capital 5,240 5,240 Retained earnings 30,624 27,060 Total stockholders' equity 35,864 32,300 Total liabilities and stockholders' equity $ 56,784 $ 52,040 Stockholders' equity: Common stock Additional paid-in capital Weller Corporation Comparative Income Statement and Reconciliation Administrative expenses (dollars in thousands) This Year Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses $ 83,000 54,000 Last Year $ 78,000 50,000 29,000 28,000 8,900 8,400 12,400 11,400 21,300 19,800 7,700 8,200 1,200 1,200 6,500 7,000 2,600 2,800 3,900 4,200 336 672 3,564 3,528 27,060 23,532 Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes 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: $ 30,624 $27,060 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (1.e., 0.1234 should be entered as 12.3).) 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 840,000 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 $20. 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 9,300 8,360 $ 6,344 12,700 $ 6,400 9,900 1,840 2,180 30,784 26,240 6,400 6,400 19,600 19,400 26,000 25,800 $ 56,784 $ 52,040 $ 9,900 $ 8,500 680 900 340 340 10,920 9,740 10,000 10,000 20,920 19,740 840 840 4,400 4,400 Total paid-in capital 5,240 5,240 Retained earnings 30,624 27,060 Total stockholders' equity 35,864 32,300 Total liabilities and stockholders' equity $ 56,784 $ 52,040 Stockholders' equity: Common stock Additional paid-in capital Weller Corporation Comparative Income Statement and Reconciliation Administrative expenses (dollars in thousands) This Year Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses $ 83,000 54,000 Last Year $ 78,000 50,000 29,000 28,000 8,900 8,400 12,400 11,400 21,300 19,800 7,700 8,200 1,200 1,200 6,500 7,000 2,600 2,800 3,900 4,200 336 672 3,564 3,528 27,060 23,532 Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes 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: $ 30,624 $27,060 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (1.e., 0.1234 should be entered as 12.3).)
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Draw a graph with a steep Phillips curve and a graph with a gently sloped Phillips curve. (a) Explain how the two economies respond differently to a boom and to a slump. (b) What are some factors...
-
If V is the set of ordered pairs (x, y) of real numbers, show that it is a vector space if (x, y) + (x1, y1) = (x + x1, y + y1 + 1) and a(x, y) = (ax, ay + a - 1). What is the zero vector in V?
-
Give an example of independent verification in an IT environment.
-
Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year: Projected benefit obligation Balance, January 1 $150,000,000 Service...
-
Find the quotient. - 2.1 0.7 - 2.1 0.7 (Simplify your answer. Type an integer or a decimal.
-
5. The ceiling of a real number x, denoted by [x], is the unique integer that satisfies the inequality [x] 1 1/2 then [2x] = 2[x] - 1 (3 marks)
-
Workplace wellness programs are intended to entice employees to engage in healthy behaviors (e.g., more exercise, less smoking). Not only can such behaviors improve the individuals health, but...
-
Both AHPs and STLDs are likely to limit benefits, be priced on the basis of an individuals health status, and impose lifetime and annual spending limits, and insurers could reject applicants on the...
-
Review the information about the quarantine case involving the nurse who returned to the United States from treating West African patients with Ebola in October 2014. Do you agree with her decision...
-
Are there legal restrictions affecting this problem? Is there a need to balance public health concerns and individual legal rights? Are there legal requirements that impact the analysis? Is new...
-
CBO estimates that premium subsidies and CSRs will cost the federal government \($851\) billion from 2018 to 2027 (CBO, 2017c). Is this a good use of resources? Are these subsidies well designed? Are...
-
Describe the way of wall-mart stores that use strategic planning in their business
-
Could a set of three vectors in span all of? Explain. What about n vectors in when n is less than m? R4
-
Using the demand and cost curves of an individual firm in oligopoly, demonstrate the effects of each of the following: a. The Clean Air Act b. The Nutrition and Labeling Act c. A ban on smoking...
-
Explain why a market in which broadcast licenses can be purchased might be more efficient than having the FCC assign licenses on some basis designed by the FCC.
-
Kodak has developed an important brand name through its advertising, innovation, and product quality and service. Suppose Kodak sets up a network of exclusive dealerships, and one of the dealers...
Study smarter with the SolutionInn App