Please help me solve 1,2 and 3 on the screen shot. Below are the financial statments. Thank you 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 $21. 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 $ 1,110 $ 1,350 Accounts receivable, net 9,600 6,800 Inventory 13,300 11,900 Prepaid expenses 660 500 Total current assets 24,670 20,550 Property and equipment: Land 10,700 10,700 Buildings and equipment, net 47,341 40,133 Total property and equipment 58,041 50,833 Total assets $ 82,711 $ 71,383 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 18,800 $ 19,300 Accrued liabilities 1,040 830 Notes payable, short term 0 230 Total current liabilities 19,840 20,360 Long-term liabilities: Bonds payable 8,200 8,200 Total liabilities 28,040 28,560 Stockholders' equity: Common stock 2,000 2,000 Additional paid-in capital 4,000 4,000 Total paid-in capital 6,000 6,000 Retained earnings 48,671 36,823 Total stockholders' equity 54,671 42,823 Total liabilities and stockholders' equity $ 82,711 $ 71,383 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 75,000 $ 64,000 Cost of goods sold 36,000 35,000 Gross margin 39,000 29,000 Selling and administrative expenses: Selling expenses 10,800 11,000 Administrative expenses 7,300 6,500 Total selling and administrative expenses 18,100 17,500 Net operating income 20,900 11,500 Interest expense 820 820 Net income before taxes 20,080 10,680 Income taxes 8,032 4,272 Net income 12,048 6,408 Dividends to common stockholders 200 625 Net income added to retained earnings 11,848 5,783 Beginning retained earnings 36,823 31,040 Ending retained earnings $ 48,671 $ 36,823

Please help me solve 1,2 and 3 on the screen shot. Below are the financial statments. Thank you 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 $21. 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 $ 1,110 $ 1,350 Accounts receivable, net 9,600 6,800 Inventory 13,300 11,900 Prepaid expenses 660 500 Total current assets 24,670 20,550 Property and equipment: Land 10,700 10,700 Buildings and equipment, net 47,341 40,133 Total property and equipment 58,041 50,833 Total assets $ 82,711 $ 71,383 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 18,800 $ 19,300 Accrued liabilities 1,040 830 Notes payable, short term 0 230 Total current liabilities 19,840 20,360 Long-term liabilities: Bonds payable 8,200 8,200 Total liabilities 28,040 28,560 Stockholders' equity: Common stock 2,000 2,000 Additional paid-in capital 4,000 4,000 Total paid-in capital 6,000 6,000 Retained earnings 48,671 36,823 Total stockholders' equity 54,671 42,823 Total liabilities and stockholders' equity $ 82,711 $ 71,383 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 75,000 $ 64,000 Cost of goods sold 36,000 35,000 Gross margin 39,000 29,000 Selling and administrative expenses: Selling expenses 10,800 11,000 Administrative expenses 7,300 6,500 Total selling and administrative expenses 18,100 17,500 Net operating income 20,900 11,500 Interest expense 820 820 Net income before taxes 20,080 10,680 Income taxes 8,032 4,272 Net income 12,048 6,408 Dividends to common stockholders 200 625 Net income added to retained earnings 11,848 5,783 Beginning retained earnings 36,823 31,040 Ending retained earnings $ 48,671 $ 36,823

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 43P

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Please help me solve 1,2 and 3 on the screen shot. Below are the financial statments. Thank you

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 $21. 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	$	1,110	$	1,350
Accounts receivable, net		9,600		6,800
Inventory		13,300		11,900
Prepaid expenses		660		500

Total current assets		24,670		20,550

Property and equipment:
Land		10,700		10,700
Buildings and equipment, net		47,341		40,133

Total property and equipment		58,041		50,833

Total assets	$	82,711	$	71,383

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	18,800	$	19,300
Accrued liabilities		1,040		830
Notes payable, short term		0		230

Total current liabilities		19,840		20,360
Long-term liabilities:
Bonds payable		8,200		8,200

Total liabilities		28,040		28,560

Stockholders' equity:
Common stock		2,000		2,000
Additional paid-in capital		4,000		4,000

Total paid-in capital		6,000		6,000
Retained earnings		48,671		36,823

Total stockholders' equity		54,671		42,823

Total liabilities and stockholders' equity	$	82,711	$	71,383

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$	75,000	$	64,000
Cost of goods sold		36,000		35,000

Gross margin		39,000		29,000

Selling and administrative expenses:
Selling expenses		10,800		11,000
Administrative expenses		7,300		6,500

Total selling and administrative expenses		18,100		17,500

Net operating income		20,900		11,500
Interest expense		820		820

Net income before taxes		20,080		10,680
Income taxes		8,032		4,272

Net income		12,048		6,408
Dividends to common stockholders		200		625

Net income added to retained earnings		11,848		5,783
Beginning retained earnings		36,823		31,040

Ending retained earnings	$	48,671	$	36,823

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