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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. 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 $29. 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 $ 1,190 $ 1,280 Accounts receivable, net 10,300 7,100 Inventory 13,400 10,800 Prepaid expenses 750 600 Total current assets 25,640 19,780 Property and equipment: Land 9,000 9,000 Buildings and equipment, net 52,660 41,628 Total property and equipment 61,660 50,628 Total assets $ 87,300 $ 70,408 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19,500 $ 18,900 Accrued liabilities 900 860 Notes payable, short term 210 210 Total current liabilities 20,610 19,970 Long-term liabilities: Bonds payable 9,700 9,700 Total liabilities 30,310 29,670 Stockholders' equity: Common stock 500 500 Additional paid-in capital 4,000 4,000 Total paid-in capital 4,500 4,500 Retained earnings 52,490 36,238 Total stockholders' equity 56,990 40,738 Total liabilities and stockholders' equity $ 87,300 $ 70,408 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 81,780 $ 64,000 Cost of goods sold 35,090 36,000 Gross margin 46,690 28,000 Selling and administrative expenses: Selling expenses 11,200 10,200 Administrative expenses 7,100 7,000 Total selling and administrative expenses 18,300 17,200 Net operating income 28,390 10,800 Interest expense 970 970 Net income before taxes 27,420 9,830 Income taxes 10,968 3,932 Net income 16,452 5,898 Dividends to common stockholders 200 500 Net income added to retained earnings 16,252 5,398 Beginning retained earnings 36,238 30,840 Ending retained earnings $ 52,490 $ 36,238

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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. 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 $29. 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 $ 1,190 $ 1,280 Accounts receivable, net 10,300 7,100 Inventory 13,400 10,800 Prepaid expenses 750 600 Total current assets 25,640 19,780 Property and equipment: Land 9,000 9,000 Buildings and equipment, net 52,660 41,628 Total property and equipment 61,660 50,628 Total assets $ 87,300 $ 70,408 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19,500 $ 18,900 Accrued liabilities 900 860 Notes payable, short term 210 210 Total current liabilities 20,610 19,970 Long-term liabilities: Bonds payable 9,700 9,700 Total liabilities 30,310 29,670 Stockholders' equity: Common stock 500 500 Additional paid-in capital 4,000 4,000 Total paid-in capital 4,500 4,500 Retained earnings 52,490 36,238 Total stockholders' equity 56,990 40,738 Total liabilities and stockholders' equity $ 87,300 $ 70,408 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 81,780 $ 64,000 Cost of goods sold 35,090 36,000 Gross margin 46,690 28,000 Selling and administrative expenses: Selling expenses 11,200 10,200 Administrative expenses 7,100 7,000 Total selling and administrative expenses 18,300 17,200 Net operating income 28,390 10,800 Interest expense 970 970 Net income before taxes 27,420 9,830 Income taxes 10,968 3,932 Net income 16,452 5,898 Dividends to common stockholders 200 500 Net income added to retained earnings 16,252 5,398 Beginning retained earnings 36,238 30,840 Ending retained earnings $ 52,490 $ 36,238

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 1AFE

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Please help me answer questions 1-5 on the screenshot. In addition can you please help me find the total asset turn over that is not listed? Below are the financial statements. Thank you

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$	1,190	$	1,280
Accounts receivable, net		10,300		7,100
Inventory		13,400		10,800
Prepaid expenses		750		600

Total current assets		25,640		19,780

Property and equipment:
Land		9,000		9,000
Buildings and equipment, net		52,660		41,628

Total property and equipment		61,660		50,628

Total assets	$	87,300	$	70,408

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,500	$	18,900
Accrued liabilities		900		860
Notes payable, short term		210		210

Total current liabilities		20,610		19,970
Long-term liabilities:
Bonds payable		9,700		9,700

Total liabilities		30,310		29,670

Stockholders' equity:
Common stock		500		500
Additional paid-in capital		4,000		4,000

Total paid-in capital		4,500		4,500
Retained earnings		52,490		36,238

Total stockholders' equity		56,990		40,738

Total liabilities and stockholders' equity	$	87,300	$	70,408

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$	81,780	$	64,000
Cost of goods sold		35,090		36,000

Gross margin		46,690		28,000

Selling and administrative expenses:
Selling expenses		11,200		10,200
Administrative expenses		7,100		7,000

Total selling and administrative expenses		18,300		17,200

Net operating income		28,390		10,800
Interest expense		970		970

Net income before taxes		27,420		9,830
Income taxes		10,968		3,932

Net income		16,452		5,898
Dividends to common stockholders		200		500

Net income added to retained earnings		16,252		5,398
Beginning retained earnings		36,238		30,840

Ending retained earnings	$	52,490	$	36,238

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