1 1 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 $27. All of the company's sales are on account 02 points 8 04.2001 Weller Corporation Comparative Balance Sheet (dollars in thousanda) Skloped This Year Last Year eBook $ 1,200 10,500 12,700 620 25,020 $1,400 8.400 11,700 630 22,130 Print 0 9,400 44,628 54,028 $ 79,048 9,400 40.724 50,124 $ 72,254 References Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: tonds payable Total liabilities stockholders' equityt Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 20,500 1.010 140 21,650 $ 18,600 880 140 19,620 9,100 30, 750 9.100 28, 720 600 4.000 4,600 43,698 48,298 $ 79,048 600 4,000 4,500 38.934 43.534 $ 72,254 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $70,000 Cont of goods sold 42,000 Gross margin 28.000 Selling and administrative expenses Selling expenses 11,500 Administrative expenses 5,900 Total selling and administrative expenses 18.400 Net operating income 9.600 Interest expense 910 Net Income before taxes 3.690 Last Year $ 65,000 34,000 31,000 10,800 6.400 17,200 13,800 910 12,890 MC 1,010 140 21,650 880 140 19,620 9,100 30, 750 9,100 28, 720 Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 28:51 600 4,000 4,600 43,698 48,298 $ 79,048 600 4,000 4,600 38,934 43,534 $ 72,254 bed pok Last Year $ 65,000 34,000 31,000 fint rences Weller Corporation Col ative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 70,000 Cost of goods sold 42,000 Gross margin 28,000 Selling and administrative expenses: Selling expenses 11,500 Administrative expenses 6,900 Total selling and administrative expenses 18,400 Net operating income 9,600 Interest expense 910 Net income before taxes 8,690 Income taxes 3,476 Net income 5,214 Dividends to common stockholders 450 Net income added to retained earnings 4,764 Beginning retained earnings 38,934 Ending retained earnings $ 43,698 10,800 6,400 17,200 13,800 910 12,890 5, 156 7, 734 240 7,494 31,440 $ 38,934 Required: Compute the following financial data and ratios for this year: 1. Working capital. (Enter your answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 1. Working capital 2. Current ratio 3. Acid-test ratio 2. 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 700,000 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 $20. All of the company's sales are on account 02 point 8 4214 Weller Corporation Comparative Balance sheet (dollar in thousands) This Year Last Year 5 1,230 10,500 13.400 $ 1,290 8,000 11,500 650 21.440 620 25,750 11,000 54,450 65,450 $ 91,200 11,000 39,140 50,140 $ 71,580 ter Assets Current assets Cash Accounts receivable, net Taventory Prepaid expenses Total current asset Property and equipment Land Buildings and equipment, net Total property and equipment Total este Liabilities and stockholders' quity Current liabilities Accounts payable herved abilities Notes payable, short term Total urent liabilities Long-term liabilities Bonde payable Total liabilities stockholders' equity! Common stock Additional paid in capital Total paid in capital Betained warning Total stockholders' equity Total Ilabilities and stockholders' equity $ 17,600 740 $ 20,000 1,040 110 21,170 130 18.470 0,500 29,670 8,500 26.970 700 4,000 4,700 56,00 61,58 391,200 700 4.000 4,700 39.910 44.610 $ 71.580 Weller Corporation Comparative Income statement and Reconciliation (dollars in thousands This Year Sales $ 16,025 cost of foods sold 38,595 Georgi 47.430 Selling and administrative expenses Selling expenses 10, 700 Administrative expenses 3,200 Total selling and administrative expenses 17.900 Net operating income 29,530 Interest expense 850 Net Incone before taxe 29,680 Last Year $ 66,000 32,000 34,000 10,200 6.500 16.700 17,300 850 16.450 MC Graw HI nts 042733 Sted Last Year $ 66,000 32,000 34,000 BOOK Heller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 86,025 Cont of goods sold 38,595 Gross margin 47,430 Selling and administrative expenses Selling expenses 10,700 Administrative expenses 7,200 Total selling and administrative expenses 17,900 Net operating income 29,530 Interest expense 850 Net Income before taxes 28,680 Income taxes 11,472 Net Income 17, 208 Dividends to common stockholders 280 Net incone added to retained earnings 16,928 Beginning retained earnings 39,910 Ending retained earnings $ 56,830 10,200 6,500 16.700 17,300 850 16,450 6,580 9,870 700 9,170 30,740 $ 39,910 References Required: Compute the following financial data for this year. 1. Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 3. Inventory turnover (Round your answer to 2 decimal places.) 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) 6. Total asset turnover (Round your answer to 2 decimal places.) days 1. Accounts receivable turnover 2. Average collection period 3. Inventory tumover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days 3 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 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 $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $28. All of the company's sales are on account 02 points 8420 Weller Corporation Comparative Balance Sheet dollars in thousands) This Year Last Year Spoed $ 1,130 9,100 12,900 790 23,920 $ 1,320 7.700 12,400 660 22,080 Book Part 9,400 46,563 55,963 $ 79,883 9.400 41,569 50.969 $ 73,049 fo References Assets Current asset Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment Land Buildings and equipment, het Total property and equipment Total assets Liabilities and stockholders' Equity Current liabilities Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-ter liabilities Donde payable Total liabilities stockholders' equity! Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 20,500 990 O 21,490 $ 19,200 800 120 20,120 9,600 31,090 9,600 29,720 2,000 4,000 6.000 42,793 48.793 $ 79,883 2,000 4,000 6,000 37,329 43,329 $ 73,049 Weller Corporation Comparative Income statenent and Reconciliation (dollars in thousands This Year Sales 5 67.000 Coat of goods sold 30.000 Gross margin 29,000 Selling and administrative expenses Selling expenses 11.400 Administrative expenses 7.200 Total selling and administrative expenses 18.600 Het operating income 10.400 Interest expense 960 Net Income before taxes 9.440 Last Year $ 65,000 35,000 30.000 10.900 6.200 17.600 12.400 960 11.440 bok Last Year $ 65,000 35,000 30,000 ences Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year $ 67,000 Sales Cost of goods sold 38,000 Gross margin 29,000 Selling and administrative expenses: Selling expenses 11,400 Administrative expenses 7,200 Total selling and administrative expenses 18,600 Net operating income 10,400 Interest expenso 960 Net income before taxes 9,440 Income taxes 3,776 Net income 5,664 Dividends to common stockholders 200 Net income added to retained earnings 5,464 Beginning retained earnings 37,329 Ending retained earnings $ 42,793 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio 3. Equity multiplier 10,900 6,700 17,600 12,400 960 11,440 4,576 6,864 375 6,489 30,840 $ 37,329 (For all requirements, round your answers to 2 decimal places.) 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier