Comparative Financial statements.
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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $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 $ 1,090 Accounts receivable, net $ 1,340 10,500 8, 100 Inventory 12,900 11.500 Prepaid expenses 700 540 Total current assets 25, 190 21,480 Property and equipment: Land 10,200 Buildings and equipment, net 10,200 44,886 36,226 Total property and equipment 55,086 46,426 Total assets $80,276 $67,906 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19,000 $ 18,700 Accrued liabilities 940 870 Notes payable, short term 200 200 Total current liabilities 20, 140 19,770 Long-term liabilities: Bonds payable 9.400 9,400 Total liabilities 29 540 29.170 Stockholders' equity Common stock 600 600 Additional paid-in capital 4.000 4.000 Total paid-in capital 4,600 4.600 Retained earnings 46,136 34 136 Total stockholders' equity 50,736 38,736 Total liabilities and stockholders' equity $ 80.276 $67,906 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $81,840 $ 65,000 Cost of goods sold 42,700 41,000 Gross margin 39, 140 24,000 Selling and administrative expenses Selling expenses 10,800 10,500 Administrative expenses 7.000 6.500 Total selling and administrative expenses 17,800 17.000 Net operating income 21,340 7,000 Interest expense 940 940 Net income before taxes 20,400 6,060 Income taxes 8, 160 2,424 Net income 12,240 3,636 Dividends to common stockholders 240 240 Net income added to retained earnings 12,000 3,396 Beginning retained earnings 34,136 30,740 Ending retained earnings $46, 136 $ 34,136Required: 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.) Accounts receivable turnover 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average collection period days 3. Inventory turnover. (Round your answer to 2 decimal places.) Inventory turnover 4. Average sale period. (Use 565 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average sale period days 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) Operating cycle days 6. Total asset turnover. (Round your answer to 2 decimal places.) Total asset turnover
