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 $28. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets This Year Last Year $ 1,220 9,900 12,400 610 $ 1,210 8,100 12,200 Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Current liabilities: Accounts payable Liabilities and Stockholders' Equity 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 560 24,130 22,070 9,700 9,700 46,028 39,724 55,728 49,424 $ 79,858 $ 71,494 $ 19,600 1,030 230 20,860 $ 18,600 860 230 19,690 9,600 30,460 9,600 29,290 600 600 4,000 4,000 4,600 4,600 44,798 7,604 49,398 $ 79,858 Weller Corporation Total liabilities and stockholders' equity 42,204 $ 71,494 Gross margin Selling and administrative expenses: Sales Cost of goods sold Selling expenses Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Administrative expenses This Year $ 70,000 Last Year $ 65,000 38,000 36,000 32,000 29,000 11,000 10,600 7,300 6,600 Total selling and administrative expenses 18,300 17,200 Net operating income 13,700 11,800 Interest expense 960 960 Net income before taxes 12,740 10,840 Income taxes 5,096 4,336 retained earnings Net income Dividends to common stockholders Net income added to retained earnings Beginning Ending retained earnings Required: Compute the following financial data and ratios for this year: 1. Working capital. (Enter your answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 1. Working capital 2. Current ratio 3. Acid-test ratio 7,644 450 6,504 240 7,194 37,604 6,264 31,340 $ 44,798 $ 37,604 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 $25. All of the company's sales are on account. 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 Current liabilities: Accounts payable Liabilities and Stockholders' Equity 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 This Year Last Year $1,080 9,400 13,500 700 24,680 $ 1,360 8,100 11,900 620 21,980 9,000 9,000 53,648 39,028 62,648 48,028 $ 87,328 $ 70,008 $ 19,700 1,010 250 $ 18,400 890 250 20,950 19,540 9,200 30,160 9,200 28,740 600 600 4,000 4,000 4,600 4,600 52,568 $6,668 57,168 41,268 $ 87,328 $ 70,008 ces Sales Cost of goods sold Gross margin Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year $ 82,250 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: Last Year $ 66,000 36,830 38,000 45,420 28,000 10,800 10,700 6,800 6,5001 17,600 17,200 27,820 10,800 920 920 26,900 9,880 10,760 3,952 16,140 5,928 240 600 15,900 36,668 5,328 31,340 $ 52,568 $ 36,668 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.) 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle days days days