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 800,00 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 $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $18. 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 $ 1,280 12,300 9,700 1,800 25,080 $ 1,560 9, 100 8,200 2, 100 20,960 Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment 6,000 6,000 19,200 19,000 25,200 25,000 Total assets $ 50,280 $ 45,960 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 9,500 600 300 10,400 $ 8,300 700 300 9,300 5,000 15,400 5,000 14,300 800 4,200 5,000 29,880 34,880 $ 50,280 $ 45,960 800 4,200 5,000 26,660 31,660 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin This Year Last Year $ 79,000 $ 74,000 52,000 48,000 27,000 26,000 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 8,500 12,000 20,500 6,500 600 5,900 2,360 3,540 320 8,000 11,000 19,000 7,000 600 6,400 2,560 3,840 600 3,220 26,660 $ 29,880 3,240 23,420 $ 26,660 Required: Compute the following financial data for this year: 4. Dividend yield ratio. (Round your intermediate calculations and tinal answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.)
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 800,00 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 $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $18. 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 $ 1,280 12,300 9,700 1,800 25,080 $ 1,560 9, 100 8,200 2, 100 20,960 Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment 6,000 6,000 19,200 19,000 25,200 25,000 Total assets $ 50,280 $ 45,960 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 9,500 600 300 10,400 $ 8,300 700 300 9,300 5,000 15,400 5,000 14,300 800 4,200 5,000 29,880 34,880 $ 50,280 $ 45,960 800 4,200 5,000 26,660 31,660 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin This Year Last Year $ 79,000 $ 74,000 52,000 48,000 27,000 26,000 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 8,500 12,000 20,500 6,500 600 5,900 2,360 3,540 320 8,000 11,000 19,000 7,000 600 6,400 2,560 3,840 600 3,220 26,660 $ 29,880 3,240 23,420 $ 26,660 Required: Compute the following financial data for this year: 4. Dividend yield ratio. (Round your intermediate calculations and tinal answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 13.4CP
Related questions
Question
please calculate
(1)divident yield ratio
(2)book value per share
![Exercise 14-6 (Static) Financial Ratios for Assessing Market Performance [Lo14-6]
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 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 $0.75 last
year and $0.40 this year. The market value of the company's common stock at the end of this year was $18. 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
Total current assets
Property and equipment:
Land
$ 1,280
12,300
9,700
1,800
25,080
$ 1,560
9, 100
8,200
2, 100
20,960
6,000
6,000
19,200
19,000
25,200
25,000
$ 50, 280 $ 45,960
Buildings and equipment, net
Total property and equipment
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Accrued liabilities
Notes payable, short term
Total current liabilities
Long-term liabilities:
Bonds payable
Total liabilities
Stockholders' equity:
Common stock
Additional paid-in capital
Total paid-in capital
Retained earnings
Total stockholders' equity
$ 9,500
600
300
10,400
$ 8,300
700
300
9,300
5,000
15,400
5,000
14,300
800
4,200
5,000
29,880
34,880
$ 50,280 $ 45,960
800
4,200
5,000
26,660
31,660
Total liabilities and stockholders' equity
Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
This Year Last Year
$ 79,000 $ 74,000
52,000
27,000
Sales
48,000
26,000
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling expenses
Administrative expenses
Total selling and administrative expenses
Net operating income
Interest expense
Net income before taxes
8,500
12,000
20,500
6,500
600
8,000
11,000
19,000
7,000
600
6,400
2,560
3,840
600
Income taxes
Net income
Dividends to common stockholders
Net income added to retained earnings
Beginning retained earnings
5,900
2,360
3,540
320
3,220
26,660
$ 29,880
3,240
23,420
$ 26,660
Ending retained earnings
Required:
Compute the following financial data for this year:
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe8c8790d-5d93-4219-b938-1c16754b026b%2F59a04380-99fb-4fe9-b7e3-a235927476ab%2Fb0yw03q_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 14-6 (Static) Financial Ratios for Assessing Market Performance [Lo14-6]
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 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 $0.75 last
year and $0.40 this year. The market value of the company's common stock at the end of this year was $18. 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
Total current assets
Property and equipment:
Land
$ 1,280
12,300
9,700
1,800
25,080
$ 1,560
9, 100
8,200
2, 100
20,960
6,000
6,000
19,200
19,000
25,200
25,000
$ 50, 280 $ 45,960
Buildings and equipment, net
Total property and equipment
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Accrued liabilities
Notes payable, short term
Total current liabilities
Long-term liabilities:
Bonds payable
Total liabilities
Stockholders' equity:
Common stock
Additional paid-in capital
Total paid-in capital
Retained earnings
Total stockholders' equity
$ 9,500
600
300
10,400
$ 8,300
700
300
9,300
5,000
15,400
5,000
14,300
800
4,200
5,000
29,880
34,880
$ 50,280 $ 45,960
800
4,200
5,000
26,660
31,660
Total liabilities and stockholders' equity
Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
This Year Last Year
$ 79,000 $ 74,000
52,000
27,000
Sales
48,000
26,000
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling expenses
Administrative expenses
Total selling and administrative expenses
Net operating income
Interest expense
Net income before taxes
8,500
12,000
20,500
6,500
600
8,000
11,000
19,000
7,000
600
6,400
2,560
3,840
600
Income taxes
Net income
Dividends to common stockholders
Net income added to retained earnings
Beginning retained earnings
5,900
2,360
3,540
320
3,220
26,660
$ 29,880
3,240
23,420
$ 26,660
Ending retained earnings
Required:
Compute the following financial data for this year:
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.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781337398169
Author:
Carl Warren, Jeff Jones
Publisher:
Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781337398169
Author:
Carl Warren, Jeff Jones
Publisher:
Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning