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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the year was $22. 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 Accounts receivable, net Inventory Prepaid expenses Total current assets $ 1,270 $ 1,260 10,500 7,700 13,200 12,500 770 580 25,740 22,040 Property and equipment: Land Buildings and equipment, net 10,400 48,102 10,400 37,714 Total property and equipment 58,502 48,114 Total assets $84.242 $70,154 $ 18,900 960 260 $ 18,500 820 260 20,120 19,580 8,100 8,100 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 28,220 27,680 600 4,000 600 4,000 4,600 51,422 4,600 37,874 56,022 42,474 Total liabilities and stockholders' equity $ 84,242 $ 70,154 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $82,810 $ 66,000 Cost of goods sold 41,120 35,000 Gross margin 41,690 31,000 10,800 7,100 10,700 6,600 17,900 17,300 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes 23,790 810 13,700 810 22,980 9,192 12,890 5,156 13,788 240 7,734 600 Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings 13,548 37,874 7,134 30,740 Ending retained earnings $51,422 $37,874 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.) Accounts receivable turnover Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average collection period days Inventory turnover. (Round your answer to 2 decimal places.) Inventory turnover Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average sale period days Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) Operating cycle days Total asset turnover. (Round your answer to 2 decimal places.) Total asset turnover
