Check my work Exercise 14.3 Financial Ratios for Asset Management (LO14-3] 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 $21. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets $ 1,220 9,800 12,500 610 24, 130 $ 1,290 6,600 10.000 700 19.490 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 10,100 50,070 69, 170 584,100 10,100 41,192 51,292 $70,782 $ 1,220 9,800 12,500 610 24,130 $ 1,290 6,600 10,900 700 19,490 10,100 50,070 60,170 $84,300 10,100 41,192 51,292 $70,782 Luli CHODCLS. 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 term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid in capital Retained earnings Total stockholders equity Total Habilities and stockholders' equity $18,600 940 130 19,670 $18,500 830 130 19, 460 8,300 27,97 8,300 27,760 6ee 680 4, eee 4,600 51,730 56,330 $84,30 4,6ee 38,422 43, 822 $70,782 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $75,440 $65,000 Cost of goods sold 33,930 34,000 Gross margin 41,510 31,000 Selling and administrative expenses : Selling expenses 11,500 11, eee Administrative expenses 6,600 6,700 Total selling and administrative expenses 18,100 17,700 Net operating income 23,410 13, 30e Interest expense 838 83e Net income before taxes 22,580 12,47 Income taxes 9,032 4,988 Net income 13,548 7,482 Dividends to common stockholders 240 600 Net income added to retained earnings 13,308 6,882 Beginning retained earnings 38,422 31,540 Ending retained earnings $51,730 $38, 422 Required: Compute the following financial data for this year. 1 Accounts receivable turnover Assume that all sales are on Account (Round vor ansu Prey Next 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 Accounts receivable turnover 2. Average collection period 3 inventory turnover 4 Average sale period 5 Operating cycle Total asset tumover days days
