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 Comparative Balance Sheet (dollars in thousands) Weller Corporation Comparative Income Statement arnd Reconciliation (dollars in thousands) This Year Last Year This Year Last Year Sales Cost of goods sold Gross margin Assets 79,000 74,000 Current assets: 52.000 27,000 48,000 1280 12,300 9,700 Cash 1560 9,100 8,200 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 Dividends to preferred stockholders Net income remaining for common stockholdert Inventory Prepaid expenses 1800 2,100 8,500 8,000 Total current assets 25,000 20.960 12,000 20.500 6,500 11,000 19.000 7,000 Property and equipment 6,000 19.200 25.200 50.280 6,000 19,000 Land 600 600 6,400 Buildings and equipment, net Total property and equipment Total assets 5,900 2.360 3,540 25,000 2,560 3,840 45,960 120 400 Liabilities & Stockholders' Equity 3,420 3,440 200 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 3,220 3,240 600 700 300 26,660 23,420 26.660 300 10,400 29.880 Total current liabilities Long-term liabilities Bonds payable Total liabilities 9,300 5,000 5,000 15,400 14,300 Stockholders' equity Preferred stock 2,000 2,000 Common stock 800 800 Additional paid-in capital Total paid-in capital Retained Earnings Total stockholders' equity Total liabilities & stockholders' equity 2.200 2,200 5,000 29.880 34,890 50,290 5,000 26,660 31.660 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 Comparative Balance Sheet (dollars in thousands) Weller Corporation Comparative Income Statement arnd Reconciliation (dollars in thousands) This Year Last Year This Year Last Year Sales Cost of goods sold Gross margin Assets 79,000 74,000 Current assets: 52.000 27,000 48,000 1280 12,300 9,700 Cash 1560 9,100 8,200 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 Dividends to preferred stockholders Net income remaining for common stockholdert Inventory Prepaid expenses 1800 2,100 8,500 8,000 Total current assets 25,000 20.960 12,000 20.500 6,500 11,000 19.000 7,000 Property and equipment 6,000 19.200 25.200 50.280 6,000 19,000 Land 600 600 6,400 Buildings and equipment, net Total property and equipment Total assets 5,900 2.360 3,540 25,000 2,560 3,840 45,960 120 400 Liabilities & Stockholders' Equity 3,420 3,440 200 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 3,220 3,240 600 700 300 26,660 23,420 26.660 300 10,400 29.880 Total current liabilities Long-term liabilities Bonds payable Total liabilities 9,300 5,000 5,000 15,400 14,300 Stockholders' equity Preferred stock 2,000 2,000 Common stock 800 800 Additional paid-in capital Total paid-in capital Retained Earnings Total stockholders' equity Total liabilities & stockholders' equity 2.200 2,200 5,000 29.880 34,890 50,290 5,000 26,660 31.660 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...
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