4 Exercise 14-3 Financial Ratios for Asset Management [L014-3) 2.14 points 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 the year was $27. All of the company's sales are on account. 8 02:32:24 Skipped Weller Corporation Comparative Balance Sheet dollars in thousanda) This Your Last Year eBook $ 1,270 10,300 12,100 750 24,420 $ 1,290 3.400 11.300 680 21,670 Hint P 9,600 50.551 60,251 $84.671 9,600 40.591 50, 191 $71,061 References Assets Current aussi Caah 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 Iquity Current libilities Accounts payable Recrued liabilities Notes payable, short term Total eurent liabilities Tong-term liabilities fonde payable Totalities stockholders' equity! Common stock Additional paid in capital Total paid in capital Tetained warnings $19,700 990 170 20,860 $19,300 360 170 20,330 9.900 30,760 9.900 30,230 500 4.000 4,500 49.41 500 4.000 4.500 17111 4 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 49,411 53, 911 $84.671 37, 131 41.631 $71,861 2.14 points 02:32.08 Skloped Weller Corporation Comparative Income statement and Reconciliation (dollars in thousands) This Year Last Year Sales $84,150 $65.000 Cost of goods sold 36,000 Gross margin 39,690 29,000 Selling and administrative expensent Selling expenses 10,700 10,000 Administrative expenses 7,200 6.900 Total selling and administrative expenses 17.900 16.900 Net operating income 21,790 12,100 Interest expense 990 999 Net income before taxes 20.800 11.110 Income taxes 8,320 Net income 12,480 6,666 Dividends to common stockholders 200 325 Net Income added to retained earnings 12,280 6,291 Beginning retained earnings 32,131 30,840 Inding retained earnings $49.411 $37,131 eBook Hint Print 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.) 5 Exercise 14-4 Financial Ratios for Debt Management [LO14-4) 2.16 points 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 the year was $20. All of the company's sales are on account. 023145 Mellor Corporation Comparative balance sheet (dollars in thousands) ofiles This Year Last Year $1,100 9.200 12.400 630 $1,300 8,500 12,300 500 22,640 Print 10,300 51.186 10,300 39 250 89.558 572,190 Reference $24,016 Assets Current at Canh Accounts receivable, net Inventory Prepaid expenses Total current annet Property and equipment Land building and equipment.net Total property and equipment Total at Liabilities and stockholders' quity Current labori recounts payable Merand liabilities Mots payable short term Total current abilitie Long-term biti Bonde payable Total Tables sholdere uity! Common stock Additional paid-in capital Total paid.in capital Retained earning 020.100 1.099 $17,000 700 110 20.610 21,190 9700 30.000 9.200 20210 2.000 4.000 6.000 67.926 2.000 1.000 6,000 12. 5 Total paid in capital Retained earninga Total stockholders' equity Total liabilities and stockholdera equity 6,000 49.926 S3,926 $84,816 6,000 37.888 4.BBS $72,198 2.16 points 8 02:3235 eBook Woller Corporation Comparative Income statement and Reconciliation (dollars in thousands) This Year Last Year Sales $75.000 $64,000 Cost of goods sold 39,000 33.000 Gross margin 36.000 31.000 Selling and administrative expenses Selling expenses 11,000 10.800 Administrative expenses 6,900 6.900 Total selling and administrative expenses 17.900 27.700 Net operating income 18.100 13.300 Interest expense 970 970 Net income before taxes 17,130 12,330 Income taxe 6.852 4.232 Net Income 10,270 7.398 Dividends to common stockholders 240 450 Net income added to retained earnings 10.039 6.948 Beginning retained earnings 37.888 30.940 Ending retained earnings $47,926 $37, H88 Hint Print References Required: Compute the following financial ratios for this year 1. Times interest eamed ratio 2. Debt-to-equity ratio 3. Equity multiplier (For all requirements, round your answers to 2 decimal places.) Times interesteamed atio