Question $5$

Required:

Compute the following financial data for this year:

Gross margin percentage.

Note: Round your percentage answer to $1$ decimal place $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}3).$

Net profit margin percentage.

Note: Round your percentage answer to $1$ decimal place $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}3).$

Return on total assets.

Note: Round your percentage answer to $1$ decimal place $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}3).$

Return on equity.

Note: Round your percentage answer to $2$ decimal places $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34).$

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 $830,000$ 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 $$0\mathrm{.}75$ last year and $$0\mathrm{.}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.

Comparative Balance Sheet

$($dollars in thousands$)$

This Year Last Year