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 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 companyâs common stock at the end of the year was $25. All of the companyâs 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:
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 yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.)
5. Book value per share. (Round your answer to 2 decimal places.)
1 Earnings per share ? 2 Price-earnings ratio ? 3 Dividentd payout ratio ? % 4 Dividend yield ratio ? % 5 Book value per share ?
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 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 companyâs common stock at the end of the year was $25. All of the companyâs 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:
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 yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.)
5. Book value per share. (Round your answer to 2 decimal places.)
1 | Earnings per share | ? | |
2 | Price-earnings ratio | ? | |
3 | Dividentd payout ratio | ? | % |
4 | Dividend yield ratio | ? | % |
5 | Book value per share | ? |