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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

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.)

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