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Managerial Accounting Final | Oliff

Key Concepts:

Terms in this set (24)

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 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 $1.00 last year and $0.65 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 $ 1,250 $ 1,360
Accounts receivable, net 10,600 8,500
Inventory 12,100 11,100
Prepaid expenses 760 700

Total current assets 24,710 21,660

Property and equipment:
Land 10,800 10,800
Buildings and equipment, net 41,610 36,550

Total property and equipment 52,410 47,350

Total assets $ 77,120 $ 69,010

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 19,900 $ 17,500
Accrued liabilities 1,070 880
Notes payable, short term 150 150

Total current liabilities 21,120 18,530
Long-term liabilities:
Bonds payable 9,000 9,000

Total liabilities 30,120 27,530

Stockholders' equity:
Common stock 600 600
Additional paid-in capital 4,000 4,000

Total paid-in capital 4,600 4,600
Retained earnings 42,400 36,880

Total stockholders' equity 47,000 41,480

Total liabilities and stockholders' equity $ 77,120 $ 69,010


Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)

This Year Last Year
Sales $ 66,000 $ 65,000
Cost of goods sold 37,000 37,000

Gross margin 29,000 28,000

Selling and administrative expenses:
Selling expenses 11,400 10,700
Administrative expenses 6,500 6,000

Total selling and administrative expenses 17,900 16,700

Net operating income 11,100 11,300
Interest expense 900 900

Net income before taxes 10,200 10,400
Income taxes 4,080 4,160

Net income 6,120 6,240
Dividends to common stockholders 600 600

Net income added to retained earnings 5,520 5,640
Beginning retained earnings 36,880 31,240

Ending retained earnings $ 42,400 $ 36,880


Working capital?
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 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 $1.00 last year and $0.65 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 $ 1,250 $ 1,360
Accounts receivable, net 10,600 8,500
Inventory 12,100 11,100
Prepaid expenses 760 700

Total current assets 24,710 21,660

Property and equipment:
Land 10,800 10,800
Buildings and equipment, net 41,610 36,550

Total property and equipment 52,410 47,350

Total assets $ 77,120 $ 69,010

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 19,900 $ 17,500
Accrued liabilities 1,070 880
Notes payable, short term 150 150

Total current liabilities 21,120 18,530
Long-term liabilities:
Bonds payable 9,000 9,000

Total liabilities 30,120 27,530

Stockholders' equity:
Common stock 600 600
Additional paid-in capital 4,000 4,000

Total paid-in capital 4,600 4,600
Retained earnings 42,400 36,880

Total stockholders' equity 47,000 41,480

Total liabilities and stockholders' equity $ 77,120 $ 69,010


Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)

This Year Last Year
Sales $ 66,000 $ 65,000
Cost of goods sold 37,000 37,000

Gross margin 29,000 28,000

Selling and administrative expenses:
Selling expenses 11,400 10,700
Administrative expenses 6,500 6,000

Total selling and administrative expenses 17,900 16,700

Net operating income 11,100 11,300
Interest expense 900 900

Net income before taxes 10,200 10,400
Income taxes 4,080 4,160

Net income 6,120 6,240
Dividends to common stockholders 600 600

Net income added to retained earnings 5,520 5,640
Beginning retained earnings 36,880 31,240

Ending retained earnings $ 42,400 $ 36,880


Current Ratio?
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 830,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, 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 $19.50. 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 $ 5,078 $ 5,190
Accounts receivable, net 12,600 9,250
Inventory 9,850 8,320
Prepaid expenses 1,830 2,160

Total current assets 29,358 24,920

Property and equipment:
Land 6,300 6,300
Buildings and equipment, net 19,500 19,300

Total property and equipment 25,800 25,600

Total assets $ 55,158 $ 50,520

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 9,800 $ 8,450
Accrued liabilities 660 850
Notes payable, short term 330 330

Total current liabilities 10,790 9,630
Long-term liabilities:
Bonds payable 8,750 8,750

Total liabilities 19,540 18,380

Stockholders' equity:
Common stock 830 830
Additional paid-in capital 4,350 4,350

Total paid-in capital 5,180 5,180
Retained earnings 30,438 26,960

Total stockholders' equity 35,618 32,140

Total liabilities and stockholders' equity $ 55,158 $ 50,520


Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
This Year Last Year
Sales $ 82,000 $ 77,000
Cost of goods sold 53,500 49,500

Gross margin 28,500 27,500

Selling and administrative expenses:
Selling expenses 8,800 8,300
Administrative expenses 12,300 11,300

Total selling and administrative expenses 21,100 19,600

Net operating income 7,400 7,900
Interest expense 1,050 1,050

Net income before taxes 6,350 6,850
Income taxes 2,540 2,740

Net income 3,810 4,110
Dividends to common stockholders 332 332

Net income added to retained earnings 3,478 3,778
Beginning retained earnings 26,960 23,182

Ending retained earnings $ 30,438 $ 26,960



Compute the following financial data for this year:

Gross margin percentage?
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 830,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, 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 $19.50. 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 $ 5,078 $ 5,190
Accounts receivable, net 12,600 9,250
Inventory 9,850 8,320
Prepaid expenses 1,830 2,160

Total current assets 29,358 24,920

Property and equipment:
Land 6,300 6,300
Buildings and equipment, net 19,500 19,300

Total property and equipment 25,800 25,600

Total assets $ 55,158 $ 50,520

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 9,800 $ 8,450
Accrued liabilities 660 850
Notes payable, short term 330 330

Total current liabilities 10,790 9,630
Long-term liabilities:
Bonds payable 8,750 8,750

Total liabilities 19,540 18,380

Stockholders' equity:
Common stock 830 830
Additional paid-in capital 4,350 4,350

Total paid-in capital 5,180 5,180
Retained earnings 30,438 26,960

Total stockholders' equity 35,618 32,140

Total liabilities and stockholders' equity $ 55,158 $ 50,520


Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
This Year Last Year
Sales $ 82,000 $ 77,000
Cost of goods sold 53,500 49,500

Gross margin 28,500 27,500

Selling and administrative expenses:
Selling expenses 8,800 8,300
Administrative expenses 12,300 11,300

Total selling and administrative expenses 21,100 19,600

Net operating income 7,400 7,900
Interest expense 1,050 1,050

Net income before taxes 6,350 6,850
Income taxes 2,540 2,740

Net income 3,810 4,110
Dividends to common stockholders 332 332

Net income added to retained earnings 3,478 3,778
Beginning retained earnings 26,960 23,182

Ending retained earnings $ 30,438 $ 26,960



Compute the following financial data for this year:

Net profit margin percentage?