Am... Chapter #16 - Quiz i Saved Help Save & Exit Subm 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 $21. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet eBook (dollars in thousands) This Year Last Year Hint Assets Current assets: Cash $ 1, 100 $ 1, 320 Accounts receivable, net 10 , 500 7,000 Inventory 12, 200 12 , 100 Prepaid expenses 710 540 Total current assets 24 , 510 20, 960 Property and equipment: Land 10 , 400 10 , 400 Buildings and equipment, net 50, 007 41, 096 Total property and equipment 60, 407 51, 496 Total assets $ 84, 917 $ 72 , 456 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 20 , 100 $ 18, 500 Accrued liabilities 990 710 Notes payable, short term 20 200 Total current liabilities 21, 290 19, 410 Long-term liabilities : Bonds payable 9 , 900 9, 900 Total liabilities 31, 190 29 , 310 Stockholders' equity: Common stock 700 700 Additional paid-in capital 1, 000 4, 000 Total paid-in capital 4, 700 4, 700 Retained earnings 49 , 027 38, 446 Total stockholders' equity 53 , 727 43 , 146 Total liabilities and stockholders' equity $ 84, 917 $ 72, 456 Mc Graw Prev 1 of 5 Next > HillChapter #16 - Quiz i Saved Help Save & Ex Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 74, 000 $ 66, 000 Cost of goods sold 36, 000 36, 000 Gross margin 38, 000 30, 000 Selling and administrative expenses: Selling expenses 11, 300 10 , 100 eBook Administrative expenses 7, 200 6, 100 Total selling and administrative expenses 18 , 500 16, 200 Hint Net operating income 19 , 500 13, 800 Interest expense 990 990 Net income before taxes 18 , 510 12 , 810 Income taxes 7, 404 5, 124 Net income 11 , 106 7, 686 Dividends to common stockholders 525 280 Net income added to retained earnings 10 , 581 7, 406 Beginning retained earnings 38 , 446 31, 040 Ending retained earnings $ 49, 027 $ 38 , 446 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 ratio 3. Acid-test ratio Mc Graw HillYouTube h Hulu | Watch N M myMU Account 1 HubSpot Academy a Prime Video - Am. Chapter #16 - Quiz i Saved Help Save & Exit Submit Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. 2 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 this year was $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands ) eBook This Year Last Year Assets Hint Current assets : Cash $ 1, 100 $ 1, 360 Accounts receivable, net 10 , 500 8 , 200 Inventory 12 , 300 11, 800 Prepaid expenses 640 700 Total current assets 24 , 540 22 , 060 Property and equipment: Land 9 , 700 9 , 700 Buildings and equipment, net 52 , 681 37, 417 Total property and equipment 62, 381 47, 117 Total assets $ 86, 921 $ 69, 177 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 20, 500 $ 18, 300 Accrued liabilities 1, 030 700 Notes payable, short term 190 190 Total current liabilities 21 , 720 19 , 190 Long-term liabilities: Bonds payable 8 , 300 8, 300 Total liabilities 30 , 020 27 , 490 Stockholders' equity: Common stock 500 500 Additional paid-in capital 4, 000 4, 000 Total paid-in capital 4, 500 4, 500 Retained earnings 52 , 401 37 , 187 Total stockholders' equity 56, 901 41 , 687 Total liabilities and stockholders' equity $ 86, 921 $ 69, 177 Weller Corporation Comparative Income Statement and Reconciliation Mc HillChapter #16 - Quiz i Saved Help Save & Exit Comparative Income Statement and Reconciliation (dollars in thousands) 2 This Year Last Year Sales $ 82, 280 $ 64, 000 Cost of goods sold 38 , 560 35, 000 Gross margin 43, 720 29 , 000 Selling and administrative expenses: Selling expenses 10 , 500 10 , 200 Administrative expenses 6, 700 6, 600 Total selling and administrative expenses 17 , 200 6 , 800 eBook Net operating income 26, 520 12 , 200 830 830 Hint Interest expense Net income before taxes 25 , 690 1, 370 Income taxes 10, 276 4, 548 Net income 15 , 414 6, 822 Dividends to common stockholders 200 375 Net income added to retained earnings 15, 214 6, 447 Beginning retained earnings 37 , 187 30, 740 Ending retained earnings $ 52, 401 $ 37 , 187 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.) 1. Accounts receivable turnover 2. Average collection period days 3. Inventory turnover 4. Average sale period days 5. Operating cycle days 6. Total asset turnover C awHubSpot Academy a Prime Video - Am... Chapter #16 - Quiz i Saved Help Save & Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. 3 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 this year was $29. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet eBook (dollars in thousands) This Year Last Year Hint Assets Current assets: Cash $ 1, 230 $ 1, 240 Accounts receivable, net 9, 200 6, 800 Inventory 12 , 300 10 , 900 Prepaid expenses 720 600 Total current assets 23 , 450 19 , 540 Property and equipment: Land 9 , 100 9 , 100 Buildings and equipment, net 46, 044 15 , 182 Total property and equipment 55, 144 54, 282 Total assets $ 78, 594 $ 73, 822 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19, 400 $ 18, 000 Accrued liabilities 1, 100 880 Notes payable, short term 220 Total current liabilities 20, 500 19 , 100 Long-term liabilities: Bonds payable 9 , 800 9, 800 Total liabilities 30, 300 28, 900 Stockholders' equity : Common stock 2, 000 2, 000 Additional paid-in capital 4, 000 4, 000 Total paid-in capital 6,000 6, 000 Retained earnings 42, 294 38 , 922 Total stockholders' equity 48 , 294 44, 922 Total liabilities and stockholders' equity $ 78, 594 $ 73, 822 Weller Corporation Mc Graw HillPrime Video - Am... Chapter #16 - Quiz i Saved Help Save & Weller Corporation 3 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 66, 000 $ 65,000 Cost of goods sold 41, 000 34, 000 Gross margin 25, 000 31, 000 Selling and administrative expenses: Selling expenses 11, 000 10 , 400 eBook Administrative expenses 7,000 6, 400 Hint Total selling and administrative expenses 18 , 000 16 , 800 Net operating income 7, 000 14, 200 Interest expense 980 980 Net income before taxes 6, 020 13, 220 Income taxes 2, 408 5 , 288 Net income 3 , 612 7,932 Dividends to common stockholders 240 450 Net income added to retained earnings 3, 372 7, 482 Beginning retained earnings 38 , 922 31 , 440 Ending retained earnings $ 42, 294 $ 38, 922 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. (For all requirements, round your answers to 2 decimal places.) 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier Mc Graw