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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 bond payable was 10%, 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 $25. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Total selling and administrative expenses Selling expenses 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 Required: Compute the following financial ratios for this year: 1. Times Interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. (For all requirements, round your answers to 2 decimal places.) 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier This Year Last Year $ 1,090 10,400 $ 1,270 7,500 13,300 12,200 600 640 25,390 21,610 10,000 10,000 41,784 37,062 51,784 47,062 $ 77,174 $ 68,672 $ 20,200 $ 19,300 930 e 730 270 21,130 20,300 8,800 8,800 29,930 29,100 2,000 2,000 4,000 4,000 6,000 6,000 41,244 33,572 47,244 39,572 $ 77,174 $ 68,672 This Year $ 69,000 Last Year $ 64,000 37,000 41,000 32,000 23,000 11,000 10,400 7,000 6,000 18,000 14,000 880 13,120 16,400 6,600 880 5,720 5,248 2,288 7,872 3,432 500 200 7,672 33,572 $ 41,244 2,932 30,640 $ 33,572

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 bond payable was 10%, 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 $25. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Total selling and administrative expenses Selling expenses 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 Required: Compute the following financial ratios for this year: 1. Times Interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. (For all requirements, round your answers to 2 decimal places.) 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier This Year Last Year $ 1,090 10,400 $ 1,270 7,500 13,300 12,200 600 640 25,390 21,610 10,000 10,000 41,784 37,062 51,784 47,062 $ 77,174 $ 68,672 $ 20,200 $ 19,300 930 e 730 270 21,130 20,300 8,800 8,800 29,930 29,100 2,000 2,000 4,000 4,000 6,000 6,000 41,244 33,572 47,244 39,572 $ 77,174 $ 68,672 This Year $ 69,000 Last Year $ 64,000 37,000 41,000 32,000 23,000 11,000 10,400 7,000 6,000 18,000 14,000 880 13,120 16,400 6,600 880 5,720 5,248 2,288 7,872 3,432 500 200 7,672 33,572 $ 41,244 2,932 30,640 $ 33,572

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter13: Earnings Per Share (eps)
Section: Chapter Questions
Problem 2R: Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8%...
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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 bond payable was 10%, 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 $25. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Total selling and administrative expenses Selling expenses 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 Required: Compute the following financial ratios for this year: 1. Times Interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. (For all requirements, round your answers to 2 decimal places.) 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier This Year Last Year $ 1,090 10,400 $ 1,270 7,500 13,300 12,200 600 640 25,390 21,610 10,000 10,000 41,784 37,062 51,784 47,062 $ 77,174 $ 68,672 $ 20,200 $ 19,300 930 e 730 270 21,130 20,300 8,800 8,800 29,930 29,100 2,000 2,000 4,000 4,000 6,000 6,000 41,244 33,572 47,244 39,572 $ 77,174 $ 68,672 This Year $ 69,000 Last Year $ 64,000 37,000 41,000 32,000 23,000 11,000 10,400 7,000 6,000 18,000 14,000 880 13,120 16,400 6,600 880 5,720 5,248 2,288 7,872 3,432 500 200 7,672 33,572 $ 41,244 2,932 30,640 $ 33,572
Transcribed Image Text: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 bond payable was 10%, 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 $25. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Total selling and administrative expenses Selling expenses 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 Required: Compute the following financial ratios for this year: 1. Times Interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. (For all requirements, round your answers to 2 decimal places.) 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier This Year Last Year $ 1,090 10,400 $ 1,270 7,500 13,300 12,200 600 640 25,390 21,610 10,000 10,000 41,784 37,062 51,784 47,062 $ 77,174 $ 68,672 $ 20,200 $ 19,300 930 e 730 270 21,130 20,300 8,800 8,800 29,930 29,100 2,000 2,000 4,000 4,000 6,000 6,000 41,244 33,572 47,244 39,572 $ 77,174 $ 68,672 This Year $ 69,000 Last Year $ 64,000 37,000 41,000 32,000 23,000 11,000 10,400 7,000 6,000 18,000 14,000 880 13,120 16,400 6,600 880 5,720 5,248 2,288 7,872 3,432 500 200 7,672 33,572 $ 41,244 2,932 30,640 $ 33,572
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