Question: 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
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 940,000 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 companys common stock at the end of this year was $25.00. All of the companys sales are on account.
| Weller Corporation | ||
|---|---|---|
| Comparative Balance Sheet | ||
| (dollars in thousands) | ||
| This Year | Last Year | |
| Assets | ||
| Current assets: | ||
| Cash | $ 5,304 | $ 5,350 |
| Accounts receivable, net | 15,800 | 10,450 |
| Inventory | 10,400 | 8,760 |
| Prepaid expenses | 1,940 | 2,380 |
| Total current assets | 33,444 | 26,940 |
| Property and equipment: | ||
| Land | 7,400 | 7,400 |
| Buildings and equipment, net | 20,600 | 20,400 |
| Total property and equipment | 28,000 | 27,800 |
| Total assets | $ 61,444 | $ 54,740 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 10,900 | $ 9,000 |
| Accrued liabilities | 880 | 1,400 |
| Notes payable, short term | 440 | 440 |
| Total current liabilities | 12,220 | 10,840 |
| Long-term liabilities: | ||
| Bonds payable | 10,000 | 10,000 |
| Total liabilities | 22,220 | 20,840 |
| Stockholders' equity: | ||
| Common stock | 940 | 940 |
| Additional paid-in capital | 4,900 | 4,900 |
| Total paid-in capital | 5,840 | 5,840 |
| Retained earnings | 33,384 | 28,060 |
| Total stockholders' equity | 39,224 | 33,900 |
| Total liabilities and stockholders' equity | $ 61,444 | $ 54,740 |
| Weller Corporation | ||
|---|---|---|
| Comparative Income Statement and Reconciliation | ||
| (dollars in thousands) | ||
| This Year | Last Year | |
| Sales | $ 93,000 | $ 88,000 |
| Cost of goods sold | 59,000 | 55,000 |
| Gross margin | 34,000 | 33,000 |
| Selling and administrative expenses: | ||
| Selling expenses | 9,900 | 9,400 |
| Administrative expenses | 13,400 | 12,400 |
| Total selling and administrative expenses | 23,300 | 21,800 |
| Net operating income | 10,700 | 11,200 |
| Interest expense | 1,200 | 1,200 |
| Net income before taxes | 9,500 | 10,000 |
| Income taxes | 3,800 | 4,000 |
| Net income | 5,700 | 6,000 |
| Dividends to common stockholders | 376 | 752 |
| Net income added to retained earnings | 5,324 | 5,248 |
| Beginning retained earnings | 28,060 | 22,812 |
| Ending retained earnings | $ 33,384 | $ 28,060 |
Required:
Compute the following financial data for this year:
Earnings per share.
Note: Round your answer to 2 decimal places.
Price-earnings ratio.
Note: Round your intermediate calculations and final answer to 2 decimal places.
Dividend payout ratio.
Note: Round your intermediate calculations and final answer to 2 decimal places.
Dividend yield ratio.
Note: Round your intermediate calculations and final answer to 2 decimal places.
Book value per share.
Note: Round your answer to 2 decimal places.
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