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 eller Corporation Comparative Balance Sheet (dollars in thousands) This year. Last year Assets Current assets Cash $1,190 $1,220 Accounts receivable, het 10,500 7.900 Inventory 13,600 12,200 Prepeld expenses 60 Total current assets Property and equipment: Land 9,700 9,700 Huldings and equipment, net 36,034 Total property and equipment 55,345 46536 Total assets $81,296 $68,484 Libilities and stockholders. Equity Current abilities Accounts payable $20,400 $18,500 Accrued liabilities 1.000 740 Notes payable, short term 120 220 Total current liabilities 19.410 8,109 29,750 8,100 27,510 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 600 4,000 4,600 46,946 51,546 $81,296 600 4,000 4,600 36, 374 40,974 $68,484 Last Year $66,000 39,000 27,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $81,880 Cost of goods sold 45,150 Gross margin 36,730 Selling and administrative expenses: Selling expenses 11,400 Administrative expenses 6,500 Total selling and administrative expenses 17,980 Net operating income 18,830 Interest expense 810 Net income before taxes 18,020 Income taxes 7, 208 Net income 10,812 Dividends to common stockholders 240 10,400 6,900 17,300 9,700 819 8,890 3,556 5,334 399 Net income added to retained earnings Beginning retained earnings Ending retained earnings 10,572 36,374 $46,946 5,034 31,340 $36,374 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 tumover (Round your answer to 2 decimal places.) days 1 Accounts recevable turnover 2 Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6 Total asset tumover days days
