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 the year was $30. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1.100 10,400 13,800 600 25.900 8.1,290 7,000 11,800 620 20,710 10.100 49.526 59,626 05.526 10.100 38,272 4:12 $69,092 Assets Current assets Cash Accounts receivable, net Inventory Prepaid oxpenses Total current andets Property and equipment Land Buildings and equipment, not Total property and equipment Total assets Liabilities and stockholdere Nuity Current liabilities Accounts payable Neerud Ilabilities Noton payable, short term Total current liabilities Long-term liabilities: Donds 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 519,500 1,020 200 20,720 $18,800 070 200 19,870 9, HOO 30,520 9,00 29.670 600 4.000 4,600 50,406 55.006 $85.525 600 8.000 4.600 36.012 39,412 $69.002 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $80,910 $65,000 Cost of goods sold 35,840 39,000 Gross margin 45,070 26,000 Selling and administrative expenses: Selling expenses 10,800 11,000 Administrative expenses 6,900 6,900 Total selling and administrative expenses 17,700 17,900 Net operating income 27,370 8,100 Interest expense 980 980 Net income before taxes 26,390 7,120 Income taxes 10,556 2,848 Net income 15,834 4,272 Dividends to common stockholders 240 600 Net income added to retained earnings 15,594 3,672 Beginning retained earnings 34,812 31,140 Ending retained earnings $50, 406 $34,812 Required: Compute the following financial data for this year. 1. Accounts recevable 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.) days 1 Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4 Average sale period 5. Operating cycle 6. Total asset turnover days days
