Comparative Financial statements for Weller Corporation , a merchandising company for the year ending December 31 appear below.
Required : Compute the following financial data for this year for # 5 Operating Cycle & # 6 Total asset Turnover
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. T 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 las 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 sale are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,170 10, 200 12,400 $ 1,220 7,500 11,400 700 530 24, 470 20, 650 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 term 10,800 48,648 59,448 $83,918 10,800 36,934 47, 734 $68, 384 $18,900 $18,000 1,000 800 230 230 $18,992 1,000 230 20, 130 $18,000 800 230 19,030 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 liabilities and stockholders' equity 8,600 28, 730 8, 600 27, 630 4, 500 50, 688 55, 188 S83, 918 500 4,000 4, 500 36, 254 40 754 $68, 384 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales NA 2018 308,384 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands ) This Year Last Year Sales $81,420 $65,000 Cost of goods sold 39, 270 37,000 Gross margin 42, 150 28,000 Selling and administrative expenses: Selling expenses 10, 500 10, 700 Administrative expenses 6,400 6, 500 Total selling and administrative expenses 16, 900 17, 200 Net operating income 25, 250 10 800 Interest expense 860 860 Net income before taxes 24, 390 9.940 Income taxes 9,756 3,976 Net income 14, 634 5, 964 Dividends to common stockholders 200 250 Net income added to retained earnings 14, 434 5, 714 Beginning retained earnings 36. 254 30. 540 Ending retained earnings $50, 688 $36, 254 Required: days 5. Operating cycle 6. Total asset turnover
