Case 2 Comparative financial statements for Weller Corporation for the fi scal year ending December 31 appear below. The company did not issue any new common or preferred stock during the year. A total of 800,000 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 $0.25. The market value of the company's common stock at the end of the year was $18. All of the company's sales are on account. Use 365 days for the ratios. Weller Corporation Weller Corporation Comparative Balance Sheet (dollars in thousands) Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year This Year Last Year Assets Sales 79,000 74,000 Current assets: Cost of goods sold 52,000 48,000 Gross margin 1280 12.300 9,700 Cash 1560 9,100 8,200 27,000 26.000 Accounts, receivable, net Selling and administrative expenses: Selling expenses Administrative expenses Total selling & admin. expenses Net operating income Interest expense Net income before taxes Income taxes (40%) Net income Inventory Prepaid expenses Total current assets 1800 2,100 8,500 8,000 25.080 20,960 12,000 11.000 20,500 6,500 600 5.900 19,000 7,000 600 Property and equipment Land 6.000 19,000 6.000 Buldngs and equipment, net Total property and equipment Total assets 19.200 6,400 25,200 50,280 25,000 45,960 2,360 3,540 2,560 3,840 Dividends to preferred stockholders 120 3,420 200 3,220 400 Liabilities & Stockholders' Equity Net income remaining for common stockholdert 3,440 Current liabilities: Dividend to common stockholders Net income added to retained earnings Retained earnings, beginning of the year Retained earnings, end of the year 200 Accounts payable Accrued payables Notes payable, short term 9,500 8,300 3,240 600 300 700 300 26,660 23,420 26.660 29,880 Total current liabilities 10,400 9,300 Long-term liabilities Bonds payable Total liabilities 5,000 14,300 5,000 15,400 Stockholders' equity Preferred stock 2.000 2,000 Common stock Additional paid-in capital Total paid-in capital Petained E arnings Total stockholders' equity Total liabilities & stockholders' equily 800 800 2.200 2,200 5,000 26.660 31.660 5,000 29,880 34,80 50,280 45,960
Case 2 Comparative financial statements for Weller Corporation for the fi scal year ending December 31 appear below. The company did not issue any new common or preferred stock during the year. A total of 800,000 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 $0.25. The market value of the company's common stock at the end of the year was $18. All of the company's sales are on account. Use 365 days for the ratios. Weller Corporation Weller Corporation Comparative Balance Sheet (dollars in thousands) Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year This Year Last Year Assets Sales 79,000 74,000 Current assets: Cost of goods sold 52,000 48,000 Gross margin 1280 12.300 9,700 Cash 1560 9,100 8,200 27,000 26.000 Accounts, receivable, net Selling and administrative expenses: Selling expenses Administrative expenses Total selling & admin. expenses Net operating income Interest expense Net income before taxes Income taxes (40%) Net income Inventory Prepaid expenses Total current assets 1800 2,100 8,500 8,000 25.080 20,960 12,000 11.000 20,500 6,500 600 5.900 19,000 7,000 600 Property and equipment Land 6.000 19,000 6.000 Buldngs and equipment, net Total property and equipment Total assets 19.200 6,400 25,200 50,280 25,000 45,960 2,360 3,540 2,560 3,840 Dividends to preferred stockholders 120 3,420 200 3,220 400 Liabilities & Stockholders' Equity Net income remaining for common stockholdert 3,440 Current liabilities: Dividend to common stockholders Net income added to retained earnings Retained earnings, beginning of the year Retained earnings, end of the year 200 Accounts payable Accrued payables Notes payable, short term 9,500 8,300 3,240 600 300 700 300 26,660 23,420 26.660 29,880 Total current liabilities 10,400 9,300 Long-term liabilities Bonds payable Total liabilities 5,000 14,300 5,000 15,400 Stockholders' equity Preferred stock 2.000 2,000 Common stock Additional paid-in capital Total paid-in capital Petained E arnings Total stockholders' equity Total liabilities & stockholders' equily 800 800 2.200 2,200 5,000 26.660 31.660 5,000 29,880 34,80 50,280 45,960
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...
Related questions
Question
13. Accounts receivable turnover (assume all sales are on account)
14. Average collection period
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College