AskSia

Plus

Comparative financial statements for Weller Corporation, a merchandising company...

Apr 26, 2024

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 800’000 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 this year was $18. All of the company’s sales are on account. Required: Compute the follow ratios for the company, and briefly describe the meaning of your results to the company, Current ratio, Acid-test ratio, Total asset turnover, Times interest earned ratio, debt-to-equity ratio, Net profit margin percentage, ROA, and PE ratio.

Answer

To compute the financial ratios for Weller Corporation, we need additional financial statement details such as the current assets, current liabilities, total assets, sales, net income, and interest expense. Without this information, we cannot calculate the requested ratios.

Solution

Missing Financial Statement Details: To calculate the financial ratios, specific details from the financial statements are required, such as current assets, current liabilities, total assets, sales, net income, and interest expense

Key Concept

Financial Ratios

Explanation

Financial ratios are quantitative measures derived from a company's financial statements to assess its financial health and performance. They require specific data points that are not provided in the question.