Question

In need of some help please!

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 this year was $22. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet dollars in thousands) This Year Last Year Assets Current assets: $ 1,260 7,600 11,200 $1,190 9,700 Cash Accounts receivable, net Inventory 13,500 Prepaid expenses 770 530 25,160 20,590 Total current assets Property and equipment 9,400 48,530 9,400 43,430 52,830 Land Buildings and equipment, net Total property and equipment 57,930 $83,090 $73,420 Total assets

Answer 1

average interest expense EBIT (OPERATING INCOME Total assets total shareholders equity total liabilities (debt) answers interest earned ratio debt to equity ratio equity multiplier 78255 49170 this year 900 17200 83090 53940 29150 this year 19.11 0.59 1.59 last year 900 14000 73420 44400 29020 1 2 3 interest earned ratio= operating income / interest exp debt to equity Etotal debt / total average equity equity multipliers average total assets /average equity note : since the round off factor not given so answers rounded to two decimals