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 the year was $29. All of the company's sales are on account. This Year Last Year $ 1,250 9,600 13,690 780 24,630 $ 1,410 7,600 10,600 698 20,300 9, 100 46,328 55,428 $80,058 9, 100 35, 744 44,844 $65,144 Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 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 $18,600 970 220 19,790 $17,800 810 220 18,830 8.100 27.890 8, 100 26.930 500 4.000 4,500 47,668 52.168 380,658 500 4.000 4.500 33,714 38,214 565,144 Weller Corporation Retaineu earnings Total stockholders' equity Total liabilities and stockholders' equity 47000 52,168 $80,058 33/14 38, 214 $65,144 Last Year $64,800 40,000 24,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $77,400 Cost of goods sold 35,400 Gross margin 42,000 Selling and administrative expenses: Selling expenses 10,800 Administrative expenses 6,800 Total selling and administrative expenses 17,600 Net operating income 24,400 Interest expense 810 Net income before taxes 23,590 Income taxes 9.436 Net income 14,154 Dividends to common stockholders 200 Net income added to retained earnings 13,954 Beginning retained earnings 33,714 Ending retained earnings $47,668 10,700 6,700 17,400 6,600 810 5,790 2,316 3,474 500 2,974 38,740 $33,714 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 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 turnover 4. Average sale period days days
