Question

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear belo
Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $79.000 $
Required: Compute the following financial data for this year: 1. Gross margin percentage. (Round your percentage answer to 1
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Answer #1
1) Gross Profit Margin = Gross Profit / Sales
= $27000/79000
=34.2 %
2) Profit Margin = Net Income / Sales
= $3540/79000
=4.5 %
3) Average Assets = (beginning Assets + ending Assets)/2
= ( $45960+50280)/2
= $ 48120
Return On Assets = Net Income / Average Assets
= $3540/48120
=7.4 %
4) Average Stockholders Equity = (beginning Stockholders Equity + ending Stockholders Equity)/2
= ( $31660+34880)/2
= $ 33270
Return On Stockholders Equity = Net Income / Average Stockholders Equity
= $3540/33270
=10.64 %
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