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 840,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 12%. 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 $20.00. 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 $ 6,344 $ 6,400 Accounts receivable, net 12,700 9,300 Inventory 9,900 8,360 Prepaid expenses 1,840 2,180 Total current assets 30,784 26,240 Property and equipment: Land 6,400 6,400 Buildings and equipment, net 19,600 19,400 Total property and equipment 26,000 25,800 Total assets $ 56,784 $ 52,040 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 9,900 $ 8,500 Accrued liabilities 680 900 Notes payable, short term 340 340 Total current liabilities 10,920 9,740 Long-term liabilities: Bonds payable 10,000 10,000 Total liabilities 20,920 19,740 Stockholders' equity: Common stock 840 840 Additional paid-in capital 4,400 4,400 Total paid-in capital 5,240 5,240 Retained earnings 30,624 27,060 Total stockholders' equity 35,864 32,300 Total liabilities and stockholders' equity $ 56,784 $ 52,040 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 83,000 $ 78,000 Cost of goods sold 54,000 50,000 Gross margin 29,000 28,000 Selling and administrative expenses: Selling expenses 8,900 8,400 Administrative expenses 12,400 11,400 Total selling and administrative expenses 21,300 19,800 Net operating income 7,700 8,200 Interest expense 1,200 1,200 Net income before taxes 6,500 7,000 Income taxes 2,600 2,800 Net income 3,900 4,200 Dividends to common stockholders 336 630 Net income added to retained earnings 3,564 3,570 Beginning retained earnings 27,060 23,490 Ending retained earnings $ 30,624 $ 27,060

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 840,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 12%. 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 $20.00. 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 $ 6,344 $ 6,400 Accounts receivable, net 12,700 9,300 Inventory 9,900 8,360 Prepaid expenses 1,840 2,180 Total current assets 30,784 26,240 Property and equipment: Land 6,400 6,400 Buildings and equipment, net 19,600 19,400 Total property and equipment 26,000 25,800 Total assets $ 56,784 $ 52,040 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 9,900 $ 8,500 Accrued liabilities 680 900 Notes payable, short term 340 340 Total current liabilities 10,920 9,740 Long-term liabilities: Bonds payable 10,000 10,000 Total liabilities 20,920 19,740 Stockholders' equity: Common stock 840 840 Additional paid-in capital 4,400 4,400 Total paid-in capital 5,240 5,240 Retained earnings 30,624 27,060 Total stockholders' equity 35,864 32,300 Total liabilities and stockholders' equity $ 56,784 $ 52,040 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 83,000 $ 78,000 Cost of goods sold 54,000 50,000 Gross margin 29,000 28,000 Selling and administrative expenses: Selling expenses 8,900 8,400 Administrative expenses 12,400 11,400 Total selling and administrative expenses 21,300 19,800 Net operating income 7,700 8,200 Interest expense 1,200 1,200 Net income before taxes 6,500 7,000 Income taxes 2,600 2,800 Net income 3,900 4,200 Dividends to common stockholders 336 630 Net income added to retained earnings 3,564 3,570 Beginning retained earnings 27,060 23,490 Ending retained earnings $ 30,624 $ 27,060

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Can you help me answer numbers 4 and 5 in the screen shot? The financial statements and additional info are below. Thank you

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$	6,344	$	6,400
Accounts receivable, net		12,700		9,300
Inventory		9,900		8,360
Prepaid expenses		1,840		2,180

Total current assets		30,784		26,240

Property and equipment:
Land		6,400		6,400
Buildings and equipment, net		19,600		19,400

Total property and equipment		26,000		25,800

Total assets	$	56,784	$	52,040

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	9,900	$	8,500
Accrued liabilities		680		900
Notes payable, short term		340		340

Total current liabilities		10,920		9,740
Long-term liabilities:
Bonds payable		10,000		10,000

Total liabilities		20,920		19,740

Stockholders' equity:
Common stock		840		840
Additional paid-in capital		4,400		4,400

Total paid-in capital		5,240		5,240
Retained earnings		30,624		27,060

Total stockholders' equity		35,864		32,300

Total liabilities and stockholders' equity	$	56,784	$	52,040

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$	83,000	$	78,000
Cost of goods sold		54,000		50,000

Gross margin		29,000		28,000

Selling and administrative expenses:
Selling expenses		8,900		8,400
Administrative expenses		12,400		11,400

Total selling and administrative expenses		21,300		19,800

Net operating income		7,700		8,200
Interest expense		1,200		1,200

Net income before taxes		6,500		7,000
Income taxes		2,600		2,800

Net income		3,900		4,200
Dividends to common stockholders		336		630

Net income added to retained earnings		3,564		3,570
Beginning retained earnings		27,060		23,490

Ending retained earnings	$	30,624	$	27,060

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