1 - Exercises 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. Th 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 $21. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year 5 1.150 9,600 12,180 70e 23.558 5 1,280 6,500 12,600 560 28,940 10,400 43,303 58.703 $ 82,253 10,400 41, 448 51,848 572,788 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-tern Isabilities: Bonds payable Total liabilities Stockholders' equity Connon stock Additional paid in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 18,700 960 230 19,892 $ 19, 100 830 230 20,160 9.200 29,90 9,20 29,350 60 600 4,000 4,600 48.563 53,163 $ 82,253 4,000 4,602 38.828 43,428 $ 72,788 Last Year $ 66,000 34,000 32,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 74,865 Cost of goods sold 39,520 Gross margin 35,345 Selling and administrative expenses: Selling expenses 10,880 Administrative expenses 7.000 Total selling and administrative expenses 17,800 Net operating income 17.545 Interest expense 920 Net income before taxes 16,625 Income taxes 5,650 Net income 9,975 Dividends to common stockholders 240 Net income added to retained earnings 9,735 Beginning retained earnings 38,828 20,900 6,700 17,600 14,400 92e 13,480 5.392 8.088 380 7,783 31.040 Save + 14 - Exercises 230 19,890 2:30 20,160 9,200 29,90 9.200 29,360 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 bee 600 4.ee 4,600 48,563 53,163 $ 82,253 5:56 4.ee 4,680 38,828 43,428 $. 72,788 Last Year $ 66,00 34, eee 32, 80e Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 74,865 Cost of goods sold 39,520 Gross margin 35,345 Selling and administrative expenses: Selling expenses 10,800 Administrative expenses 7.000 Total selling and administrative expenses 17,888 Net operating income 17,545 Interest expense 920 Net income before taxes 16,625 Income taxes 6,650 Net income 9,975 Dividends to common stockholders 24e Net income added to retained earnings 9,735 Beginning retained earnings 38,828 Ending retained earnings $ 48,563 es 10,900 6,78e 17,600 14,488 92e 13,480 5,392 8,888 3ee 7.788 31.84e $ 38,828 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 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 decir 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.) 9.30 days 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6 Total asset turnover days days