Comparative financial statements for Weller Corporation 2023 Business Finance
2023 Comparative financial statements for Weller Corporation a merchandising company for the fiscal
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Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal 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 $0.50. The market value of the company’s common stock at the end of the year was $25. All of the company’s sales are on account. |
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Weller Corporation |
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This Year |
Last Year |
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Assets |
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Current assets: |
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Cash |
$ |
1,130 |
$ |
1,340 |
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Accounts receivable, net |
10,500 |
6,700 |
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Inventory |
12,800 |
11,800 |
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Prepaid expenses |
770 |
570 |
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Total current assets |
25,200 |
20,410 |
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Property and equipment: |
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Land |
10,400 |
10,400 |
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Buildings and equipment, net |
41,440 |
36,670 |
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Total property and equipment |
51,840 |
47,070 |
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Total assets |
$ |
77,040 |
$ |
67,480 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
$ |
20,400 |
$ |
17,500 |
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Accrued liabilities |
900 |
770 |
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Notes payable, short term |
160 |
160 |
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Total current liabilities |
21,460 |
18,430 |
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Long-term liabilities: |
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Bonds payable |
10,000 |
10,000 |
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Total liabilities |
31,460 |
28,430 |
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Stockholders’ equity: |
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Common stock |
500 |
500 |
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Additional paid-in capital |
4,000 |
4,000 |
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Total paid-in capital |
4,500 |
4,500 |
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Retained earnings |
41,080 |
34,550 |
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Total stockholders’ equity |
45,580 |
39,050 |
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Total liabilities and stockholders’ equity |
$ |
77,040 |
$ |
67,480 |
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Weller Corporation |
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This Year |
Last Year |
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Sales |
$ |
67,000 |
$ |
65,000 |
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Cost of goods sold |
37,000 |
40,000 |
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Gross margin |
30,000 |
25,000 |
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Selling and administrative expenses: |
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Selling expenses |
10,800 |
10,500 |
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Administrative expenses |
6,900 |
6,400 |
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Total selling and administrative expenses |
17,700 |
16,900 |
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Net operating income |
12,300 |
8,100 |
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Interest expense |
1,000 |
1,000 |
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Net income before taxes |
11,300 |
7,100 |
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Income taxes |
4,520 |
2,840 |
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Net income |
6,780 |
4,260 |
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Dividends to common stockholders |
250 |
250 |
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Net income added to retained earnings |
6,530 |
4,010 |
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Beginning retained earnings |
34,550 |
30,540 |
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Ending retained earnings |
$ |
41,080 |
$ |
34,550 |
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Required: |
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Compute the following financial data and ratios for this year: |
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1. |
Working capital. |
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2. |
Current ratio. (Round your answer to 2 decimal places.) |
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3. |
Acid-test ratio. (Round your answer to 2 decimal places.) |
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