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can anyone tell me if I did this correctly? If not can you provide an explanation & correct answer. Comparative financial statements for Weller Corporation,
can anyone tell me if I did this correctly? If not can you provide an explanation & correct answer.
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 this year was $29. 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 $ 1,130 $ 1,260 Accounts receivable, net 10,000 6,800 Inventory 12,500 11,400 Prepaid expenses 700 660 Total current assets 25,130 20,120 Property and equipment: Land 10.700 10,700 Buildings and equipment, net 46.104 37,040 Total property and equipment 56.004 47,240 Total asset $81,934 $ 67.860 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 19,100 $ 19,000 Accrued Liabilities 1,010 Notes payable, short term Total current liabilities 20.350 20.000 Long-term liabilities monde payable 9.500 9.500 Total liabilities 29.050 Stockholders equity 29X580 Common stock 500 500 Additional paid in capital 4.000 4,000 Total paid.in capital 4,500 4,500 Betained earnings 42,504 3.700 Total stockholders equity 32014 20200 Total bilities and stockholders' equity $81,934 $67,860 240 840 240 Woller Corporation Last Year $ 65,000 42,000 23,000 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 82,720 Cost of goods sold 40,630 Gross margin 42,090 Selling and administrative expenses Selling expenses 10,700 Administrative expenses 7.100 Total selling and administrative expenses 17,800 Net operating income 24,290 Interest expense 950 Net Income before taxes 23,340 Income taxes 9,336 Net income 14,004 Dividends to common stockholders 200 Net income added to retained earnings 13,804 Beginning retained earnings 33,780 Ending retained earningo $ 47,584 10.600 6,300 16,900 6,100 950 5,150 2,060 3,090 250 2,840 30,940 $ 33,780 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 3. Inventory tumover 4. Average sale period 5. Operating cycle 6. Total asset tumover 8.40 38.83 days 3.40 107.35 days days 0.54 Step by Step Solution
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