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 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 companys common stock at the end of this year was $28. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$ 1,090	$ 1,330
Accounts receivable, net	9,200	6,600
Inventory	12,100	12,100
Prepaid expenses	690	690
Total current assets	23,080	20,720
Property and equipment:
Land	10,800	10,800
Buildings and equipment, net	39,722	35,872
Total property and equipment	50,522	46,672
Total assets	$ 73,602	$ 67,392
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 19,100	$ 17,500
Accrued liabilities	970	860
Notes payable, short term	110	110
Total current liabilities	20,180	18,470
Long-term liabilities:
Bonds payable	9,300	9,300
Total liabilities	29,480	27,770
Stockholders' equity:
Common stock	600	600
Additional paid-in capital	4,000	4,000
Total paid-in capital	4,600	4,600
Retained earnings	39,522	35,022
Total stockholders' equity	44,122	39,622
Total liabilities and stockholders' equity	$ 73,602	$ 67,392

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 71,100	$ 65,000
Cost of goods sold	44,770	40,000
Gross margin	26,330	25,000
Selling and administrative expenses:
Selling expenses	10,500	10,300
Administrative expenses	7,000	6,300
Total selling and administrative expenses	17,500	16,600
Net operating income	8,830	8,400
Interest expense	930	930
Net income before taxes	7,900	7,470
Income taxes	3,160	2,988
Net income	4,740	4,482
Dividends to common stockholders	240	300
Net income added to retained earnings	4,500	4,182
Beginning retained earnings	35,022	30,840
Ending retained earnings	$ 39,522	$ 35,022

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.)