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 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 $24. All of the company's sales A are on account points Weller Corporation Corparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 1.268 $ 1.338 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 9,8e 6,600 11,388 13.900 75e 548 25,718 19,770 Property and equipment: Land 9,9ee 45,124 9,9ee Buildings and equipment, net Total property and equipment 39.578 55.824 49.478 $88,734 $69,248 Total assets Liabilities and Stockholders Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $19.900 $17.900 98e 748 20e 280 Total current liabilities 18,84 21.880 Long-tern liabilitics: Bonds payable 9.7ee 9.7ee Total liabilities 38.788 28.548 Stockholders' cquity: Common stock 6ee Additional paid-in capital Total paid-in capital Retained earnings Total stockholders equity Total liabilities and stockholders cquity 4,eee 4.e00 4,600 4,600 36.108 40.7e8 45,354 49,954 $8e,734 $69,248 Weller Corporation Comparative Income Statenent and Reconciliation (dollars in thousands) This Year $76.268 Last Year Sales Cost of goods sold Gross margin $66.e0e 41.58e 39.eee 34.680 27.e0 Selling and adrinistrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income 10.600 18,1ee 6,48e 7,30e 17,90e 16,see 16,78e 18,see Interest expense Net income before taxes 978 978 9,538 15,818 Income taxes Net incore Dividends to cormon stockholders 6.324 3,812 9,486 s,718 248 45e Net incore added to retained earnings Beginning retained carnings Ending retained earnings 9,246 36,188 5,268 38,848 $45,354 $36,188 Required: Compute the following financial data for this year 1. Accounts receivable turnover. (Assume thet all sales are on account.) (Round your answer to 2 decimal places.) 2. Average collection period. (Use 365 days In a year. Round your Intermedlate 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.) Required: Compute the following financial data for this year 1. Accounts receivable turnover. (Assume thet 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 5. Operating cycle. (Round your Intermedlate calculations and final answer to 2 decimal places.) 6. Total asset turnover. (Round your answer to 2 decimal places.) 2 decimal places.) Answer is complete but not entirely correct. Accounts receivable 4.85 1. turnaver 2 Average collection period 78.49 days 3 Inventory turnover 3.30 Average sale period 110.61 days 5 Operating cycle 189.10 days 6 Total asset turnover 1,02