A comparative Income statement is given below for McKenzie Sales, Limited, of Toronto: Mckenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold This Year $ 7,330,000 4,650,000 Last Year $ 5,570,000 3,510,000 Gross margin 2,680,000 2,060,800 selling and administrative expenses: 1,393,000 1,074,000 Administrative expenses 703,500 616,500 2,096,500 1,690,500 Interest expense 583,500 102,000 $ 481,500 370,300 87,000 $283,300 selling expenses Total expenses Net operating income Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $198,200 when sales increased by $1,759,200. Required: 1. Express each year's Income statement in common-size percentages. (Round your percentage answers to 1 decimal place (L.e.. 0.1234 should be entered as 12.3).) Sales Cost of goods sold This Year Last Year % % 00% 00% Gross margin Selling and administrative expenses % Selling expenses Administrative expenses % % Total selling and administrative expenses 0.0 % 0.0 % Net operating income 0.0 % 0.0 % % % Interest expense Net income before taxes 0.0% 0.0 % 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 lest year and $0.40 this year. The market value of the company's common stock at the end of this year was $22. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets : Property and equipment: Land Buildings and equipment, net Total property and equipment Meller Corporation Comparative talance Sheet (dollars in thousands) This Year Last Year $1,00 9,000 $1,300 3,000 12,00 GAB 10,109 668 24,330 19,828 10,400 10,500 42,686 40,298 53,206 50,893 $ 77,616 $70,718 Total assets Liabilities and Stockholders' Equity Current liabilities:: Accounts payable Accrued liabilities. Notes payable, short tere Total current liabilities Long-tere liabilities: Bonds payable. Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings $ 18,600 1,070 100 Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) $17,400 se 100 19,850 18,430 9,208 29,050 5,200 27,638 600 609 4,000 4,000 4,600 4,400 43,966 38,488 48,566 43,03 $77,616 $70,728 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net incoee before taxes Income taxes Net income Dividends to common stockholders Not income added to retained earnings Beginning retained earnings inding retained earnings Required: Compute the following financial data and ratios for this year. 1. Working capital. (Enter your answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places) 1. Working capital 2. Current raa 3. Acid test ralio This year Last Year $ 67,000 $ 64,000 38,000 33,000 29,000 31,000 11,400 10,000 7,008 18,200 17,500 10,800 13,400 928 928 9,880 12,488 3,952 4,992 5.928 7,488 450 348 3,478 7,348 38,4 11,348 $41,966 5 38,488 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 700,000 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 $29. All of the company's sales are on account. Willer Corporation Comparation Balance Sheet (dollars in thousandy) Assets Current assets: Cash 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' Equity Current liabilities Accounts payable Accrued liabilities Notes payable, short tere Total ent liabilities current Long-tere liabilities: Bonds payable Total liabilities Stockholders equity Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity This Year Last Year $1,348 10,00 13,400 5,70 12,300 55 20,940 9,00 1,500 41,042 37,438 50,842 47,228 $76,962 $ 67,900 1 19,500 $17,00 120 20,000 129 18,700 1,500 29,300 ,500 27-300 700 700 4,000 4,000 4,700 4,700 43,362 36,99 40,70 $ 76,962 567, Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross argin Selling and administrative expenses: selling expenses Administrative expenses Total selling and administrative expenses Not operating income i Interest expense Net Income before taxes Income taxe Net Income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year. This Year $77,000 Last Year $ 65,000 46,000 30,920 27,000 10,700 30,400 7,300 5,500 17,000 17,000 13.12 30,000 314 12,270 9,110 4,90 7.002 5,450 280 350 2,042 36,000 3,340 38.940 $ 43,363 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 sole 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) 1 Accounts receivable turnover 2. Average collection period Invertory Sumover 4 Average sale period Operating cycle 6. Tutal esset turnover 099 42.44 days 200 10130 day 14383 days 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 860,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 lest year and $0.40 this year. The market value of the company's common stock at the end of this year was $21. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets: Cash 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' Equity Current liabilities: Accounts payable Accrued 11abilities Notes payable, short tere Total current liabilities Long-tere liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation This Year Last Year $976 $1,920 15,000 10,950 18,000 3,440 1,ne 2,220 27,836 22,630 6,500 6,600 19,00 19,600 26,400 26,200 $ 54,236 $4,30 $10,300 $3,500 728 1,000 360 360 11,180 5,968 6,250 6,258 17,438 16,230 360 G 4,508 4,500 5,300 5,38 31,446 27-20 36,006 32,628 $ 54,236 $48,830 Comparative Income statement and Reconciliation (dollars in thousands) This Year Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net incore before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year. $ 85,000 Last Year $ 80,000 $5,000 $1,000 38,000 29,000 9,100 3,600 12,600 E 11,600 21,700 20,200 3,500 250 750 7,568 3,050 3,220 4,530 344 4,106 27,260 $11,446 4,830 4,342 23.118 $27,260 1. Gross margin percentage. (Round your percentage answer to 1 decimal place (e 01234 should be entered as 12.3)) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (Le, 0.1234 should be entered as 12.333 3. Return on total assets. (Round your percentage answer to 1 decimal place (ie, 0.1234 should be entered as 12.3)) 4. Return on equity: (Round your percentage answer to 2 decimal places (le, 0.1234 should be entered as 12.341) 1 Gross margin percentage 2. Net profit margin percentage 3. Furtum on tolala Return on equity