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 this year was $27. 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 $ 1,180 $ 1,390 Accounts receivable, net 9,689 6,98 Inventory 12,689 12,580 Prepaid expenses 63e 59e Total current assets 24,010 21,380 Property and equipment: Land 10,180 10,160 Buildings and equipment, net 46, 278 38,43e Total property and equipment 56,378 48,530 Total assets $ 80,388 $ 69,910 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19,980 $ 18,180 Accrued liabilities 1.840 780 Notes payable, short term 15e 15e Total current liabilities 21,890 19,830 Long-term liabilities: Bonds payable 9. Bee 9.000 Total liabilities 30,89e 28,83e Stockholders' equity: Connon stock 669 600 Additional paid-in capital 4,889 4,082 Total paid in capital 4,660 4,660 Retained earnings 45,698 37,280 Total stockholders' equity 50,298 41. Be Total liabilities and stockholders' equity $ 80,388 $ 69,910 Last Year $ 66,eee 37,200 29, eee Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 70,125 Cost of goods sold 36,395 Gross margin 33,730 Selling and administrative expenses: Selling expenses 11,380 Administrative expenses 7.180 Total selling and administrative expenses 18,480 Net operating income 15,33e Interest expense 900 Net income before taxes 14,43e Income taxes 5.772 Net income 8,658 Dividends to connon stockholders 24e Net income added to retained earnings 8.418 Beginning retained earnings 37,280 Ending retained earnings $ 45,698 10,388 6,900 17,200 11,800 900 10,900 4,360 6,548 600 5,940 31,340 $ 37,280 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.)
