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 700,000 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 $23. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,160 10,500 12,200 690 24,550 $ 1,340 7,900 11,600 530 21,370 9,300 45,655 54,955 $ 79,505 9,300 34, 637 43,937 $65, 307 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 $20,200 920 130 21,250 $17,700 900 130 18,730 8,300 29,550 8,300 27,030 700 4,000 4,700 45, 255 49,955 $ 79,505 700 4,000 4,700 33,577 38,277 $65,307 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $79,120 $65,000 Cost of goods sold 40, 460 42,000 Gross margin 38,660 23,000 Selling and administrative expenses: Selling expenses 10,600 10,900 Administrative expenses 7,300 7,000 Total selling and administrative expenses 17,900 17,900 Net operating income 20,760 5,100 Interest expense 830 830 Net income before taxes 19,930 4,270 Income taxes 7,972 1,708 Net income 11,958 2,562 Dividends to common stockholders 280 525 Net income added to retained earnings 11,678 2,037 Beginning retained earnings 33,577 31,540 Ending retained earnings $45,255 $33,577 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 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 cyclo 6. Total asset turnover days days
