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510 Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below The company did not issue any new

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510 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 shore 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 $25. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets! Cash $ 1,200 $ 1,290 Accounts receivable, net 1e, 100 7,000 Inventory 12,400 11,000 Prepaid expenses 610 Total current assets 24,310 19,800 Property and equipment: Land 9,600 Buildings and equipment, net 50.405 40,910 Total property and equipment 6e,005 50, 510 Total assets 584,315 570,310 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $19,500 $18,90 Accrued liabilities 910 750 210 210 Notes payable, short term Total current liabilities 20.620 19,850 Long-tere liabilities: Bonds payable 10, ose 10,000 Total liabilities 30,620 29,860 Stockholders' equity: 600 Conmon stock 9.600 600 JLUUNTUU Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 600 4,000 4,600 49, 095 53,695 $84, 315 600 4,000 4,600 35,850 40,450 $70,310 Last Year $65,000 38,000 27,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $79,515 Cost of goods sold 37,440 Gross margin 42, 075 Selling and administrative expenses : Selling expenses 11,300 Administrative expenses 7,300 Total selling and administrative expenses 18,600 Net operating income 23,475 Interest expense 1,000 Net income before taxes 22,475 Income taxes 8,990 Net income 13,485 Dividends to common stockholders 240 Net income added to retained earnings 13, 245 Beginning retained earnings 35,850 Ending retained earnings $49,095 10,800 6,600 17,400 9,600 1, eee 8,600 3,440 5,160 450 4,710 31,140 $35,850 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.) days 1. Accounts receivable turnover 2 Average collection period 3. Inventory tumover 4 Average sale period 5. Operating cycle 6 Total asset turnover days days

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