Question

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 600,000 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 the year was $28 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 1,150 1,340 7,400 10,600 650 19,990 10,400 12,100 720 24,370 Total current assets Property and equipment: Land 9,700 9,700 42,248-45 454 43, 434 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: 52,44853,134 $73,124 $76,818 $19,200 $19,100 850 250 20, 200 nts payable 1,060 250 Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: 20,510 9,600 29,800 9,600 30,110 Bonds payable Total liabilities Stockholders' eguity: 600 4,000 4,600 42,108 600 4,000 ,600 38, 724 46,7084333- Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 0-08 43,324 $76,818 $73,124

Answer 1

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