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 870,000 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 $21.50. All of the company's sales are on account. Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 4. Dividend yeild ratio. (Round your intermediate calculatioms and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.)

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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 870,000 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 $21.50. All of the company's sales are on account.

Required:
Compute the following financial data for this year:

1. Earnings per share. (Round your answer to 2 decimal places.)
2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.)
3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.)
4. Dividend yeild ratio. (Round your intermediate calculatioms and final answer to 2 decimal places.)
5. Book value per share. (Round your answer to 2 decimal places.)

Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
This Year Last Year
$86,000
Sales
$81,000
Cost of goods sold
Gross margin
55,500
51,500
30,500
29,500
Selling and administrative expenses:
Selling expenses
Administrative expenses
9,200
12,700
8,700
11,700
20,400
21,900
Total selling and administrative expenses
Net operating income
8,600
900
9,100
Interest expense
900
Net income before taxes
7,700
3,080
4,620
348
8,200
3,280
4,920
Income taxes
Net income
696
Dividends to common stockholders
Net income added to retained earnings
4,272
27,360
4,224
23,136
Beginning retained earnings
Ending retained earnings
$31,632
$27,360
Transcribed Image Text:Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $86,000 Sales $81,000 Cost of goods sold Gross margin 55,500 51,500 30,500 29,500 Selling and administrative expenses: Selling expenses Administrative expenses 9,200 12,700 8,700 11,700 20,400 21,900 Total selling and administrative expenses Net operating income 8,600 900 9,100 Interest expense 900 Net income before taxes 7,700 3,080 4,620 348 8,200 3,280 4,920 Income taxes Net income 696 Dividends to common stockholders Net income added to retained earnings 4,272 27,360 4,224 23,136 Beginning retained earnings Ending retained earnings $31,632 $27,360
Weller Corporation
Comparative Balance Sheet
(dollars in thousands)
This Year Last Year
Assets
Current assets:
$ 2,242
15,100
$ 3,130
Cash
Accounts receivable, net
10,100
8,480
2,240
Inventory
10,050
1,870
Prepaid expenses
Total current assets
29,262
23,950
Property and equipment:
6,700
19,900
6,700
19,700
Land
Buildings and equipment, net
Total property and equipment
26, 600
26,400
Total assets
$55,862
$50,350
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$10,200
$ 8,650
Accrued liabilities
740
1,050
Notes payable, short term
370
370
Total current liabilities
11,310
10,070
Long-term liabilities:
Bonds payable
7,500
17,570
7,500
Total liabilities
18,810
Stockholders' equity:
Common stock
870
870
4,550
4,550
Additional paid-in capital
Total paid-in capital
Retained earnings
5,420
31,632
5,420
27,360
Total stockholders' equity
37,052
32,780
Total liabilities and stockholders' equity
$55,862
$50,350
Transcribed Image Text:Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 2,242 15,100 $ 3,130 Cash Accounts receivable, net 10,100 8,480 2,240 Inventory 10,050 1,870 Prepaid expenses Total current assets 29,262 23,950 Property and equipment: 6,700 19,900 6,700 19,700 Land Buildings and equipment, net Total property and equipment 26, 600 26,400 Total assets $55,862 $50,350 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $10,200 $ 8,650 Accrued liabilities 740 1,050 Notes payable, short term 370 370 Total current liabilities 11,310 10,070 Long-term liabilities: Bonds payable 7,500 17,570 7,500 Total liabilities 18,810 Stockholders' equity: Common stock 870 870 4,550 4,550 Additional paid-in capital Total paid-in capital Retained earnings 5,420 31,632 5,420 27,360 Total stockholders' equity 37,052 32,780 Total liabilities and stockholders' equity $55,862 $50,350
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