Comparative financial statements for Weller Corporation for the fiscal year ending December 31 appear below. The company did not issue any new common or preferred 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 $0.25. The market value of the company’s common stock at the end of the year was $18. All of the company’s sales are on account.

Required:

Compute the following financial ratios for common stockholders for this year:

1. Gross margin percentage.
2. Earnings per share of common stock.
3. Price-earnings ratio.
4. Dividend payout ratio.
5. Dividend yield ratio.
6. Return on total assets.
7. Return on common stockholders’ equity.
8. Book value per share.

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 1,280 $ 1,560 9,100 Cash. Accounts receivable, net Inventory.... Prepaid expenses. 12,300 9,700 8,200 2,100 1,800 25,080 Total current assets 20,960 Property and equipment: Land.. Buildings and equipment, net. 6,000 19,200 6,000 19,000 Total property and equipment . 25,200 25,000 $50,280 $45,960 Total assets. Liabilities and Stockholders' Equity Current liabilities: Accounts payable .. Accrued payables... Notes payable, short term $ 9,500 $ 8,300 600 700 300 300 Total current liabilities 10,400 9,300 Long-term liabilities: Bonds payable 5,000 5,000 Total liabilities. . 15,400 14,300 Stockholders' equity: Preferred stock. 2,000 2,000 Common stock. 800 800 Additional paid-in capital 2,200 2,200 Total paid-in capital . Retained earnings. Total stockholders' equity.. Total liabilities and stockholders' equity.. 5,000 29,880 5,000 26,660 34,880 31,660 $45,960 $50,280