look int int ences Exercise 14-5 (Algo) Financial Ratios for Assessing Profitability [LO14-5] Comparative financial statements...

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look int int ences Exercise 14-5 (Algo) Financial Ratios for Assessing Profitability [LO14-5] 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 850,000 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. $ 1,810 12,800 $710 10,000 9,950 8,400 1,850 2,200 26,410 21,310 Property and equipment: Land 6,500 6,500 Buildings and equipment, net 19,700 19,500 Total property and equipment 26,200 26,000 Total assets: $52,610 $47,310 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $10,000 $8,550 Accrued Liabilities 700 950 Notes payable, short termi 350 350 Total current Liabilities 11,050 9.850 Long-term liabilities: Bonds payable 5,000 5,000 6 4 points 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 11,050 9,856 5,000 5,000 16,050 14,850 850 850 4,450 4,450 5,300 5,300 31,250 27,160 36,560 32,460 Ok Total Liabilities and stockholders' equity $ 52,610 $47,310 H Weller Corporation Idollars in thousands) Peferences Sales Cost of goods sold Gross margin Selling and administrative expenses: Comparative Incone Statement and Reconciliation This Year $ 84,000 54,500 Last Year $ 79,000 50,500 28,500 Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net Income before taxes) Income taxes Net incone Dividends to common stockholders Net incone added to retained earnings Beginning retained earnings Ending retained earnings Required: 29,500 9,000 8,500 12,500) 11,500 21,500 20,000 5,000 8,500 600 600 7,400 7,900 2,968 3,160 4,440 4,740 340 600 4,100 27,160 $31,260 23,100 $27,160 4,060 References Required: Compute the following financial data for this year 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (ie., 0.1234 should be entered as 12.3):) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (ie., 0.1234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (ie., 0.1234 should be entered as 12.3).) 4. Return on equity (Round your percentage answer to 2 decimal places (ie., 0.1234 should be entered as 12.34)) 1. Grosa margin percentage 2. Net profit margin percentage 3. Retum on total assets 4 Return on equity % N % % look int int ences Exercise 14-5 (Algo) Financial Ratios for Assessing Profitability [LO14-5] 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 850,000 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. $ 1,810 12,800 $710 10,000 9,950 8,400 1,850 2,200 26,410 21,310 Property and equipment: Land 6,500 6,500 Buildings and equipment, net 19,700 19,500 Total property and equipment 26,200 26,000 Total assets: $52,610 $47,310 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $10,000 $8,550 Accrued Liabilities 700 950 Notes payable, short termi 350 350 Total current Liabilities 11,050 9.850 Long-term liabilities: Bonds payable 5,000 5,000 6 4 points 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 11,050 9,856 5,000 5,000 16,050 14,850 850 850 4,450 4,450 5,300 5,300 31,250 27,160 36,560 32,460 Ok Total Liabilities and stockholders' equity $ 52,610 $47,310 H Weller Corporation Idollars in thousands) Peferences Sales Cost of goods sold Gross margin Selling and administrative expenses: Comparative Incone Statement and Reconciliation This Year $ 84,000 54,500 Last Year $ 79,000 50,500 28,500 Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net Income before taxes) Income taxes Net incone Dividends to common stockholders Net incone added to retained earnings Beginning retained earnings Ending retained earnings Required: 29,500 9,000 8,500 12,500) 11,500 21,500 20,000 5,000 8,500 600 600 7,400 7,900 2,968 3,160 4,440 4,740 340 600 4,100 27,160 $31,260 23,100 $27,160 4,060 References Required: Compute the following financial data for this year 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (ie., 0.1234 should be entered as 12.3):) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (ie., 0.1234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (ie., 0.1234 should be entered as 12.3).) 4. Return on equity (Round your percentage answer to 2 decimal places (ie., 0.1234 should be entered as 12.34)) 1. Grosa margin percentage 2. Net profit margin percentage 3. Retum on total assets 4 Return on equity % N % %