value 0.00 points Comparative financial statements for Weller Corporation, a mer

Question

value 0.00 points 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 930,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 12%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the year was $24. 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 $4,038$ 4,140 15,700 10.400 8,720 2,360 10,350 1,930 Total current assets 32,018 25,620 Property and equipment: Land 7,300 7,300 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity 20,500 20,300 27,800 27,600 $59,818 $53,220 Current liabilities Accounts payable Accrued liabilities $10,800 $ 8,950 1,350 430 860 430 Notes payable, short term 12,090 10,730 8,750 8,750 20,840 19,480 Total current liabilities Long-term liabilities Bonds payable otal liabilities Stockholders' equity: Common stock Additional paid-in capital 930 4,850 930 4,850 5,780 5,780 Total paid-in capital Retained earnings 33,198 27,960 38,978 33,740 $59,818 $53,220 Total stockholders' equity Total liabilities and stockholders' equity

Explanation / Answer

1 Gross Margin percentage = (Net sales - Cost of goods sold) / Net sales *100 = 33500 / 92000 * 100 36.41 2 Net profit margin Percentage = Net income / total sales * 100 = 9350 / 92000 * 100 10.16 3 Return on total assets = earnings before interest and tax / total net assets * 100 = 10400 / 59818 * 100 17.39

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