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 $21. 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 $ 1,180 $ 1,300 Accounts receivable, net 9,100 8,100 Inventory 13,300 12,100 Prepaid expenses 640 640 Total current assets 24,220 22,140 Property and equipment: Land 10, 109 10, 180 Buildings and equipment, net 50,092 37,150 Total property and equipment 60,192 47 250 Total assets $84,412 $69, 390 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $19,500 $17,500 Accrued liabilities 1,040 Notes payable, short term 230 Total current liabilities 20,770 18,510 Long-term liabilities: Bonds payable 10,000 10,000 Total liabilities 30,770 28, 510 Stockholders' equity: Common stock 600 600 Additional paid-in capital 4,000 4,800 Total paid-in capital 4,600 4,689 Retained earnings 49,842 36,280 Total stockholders equity 53,642 40,880 Total liabilities and stockholders equity 584,412569, 390 780 230 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $77,400 $65,000 Cost of goods sold 36,830 37,000 Gross margin 40,570 28,000 Selling and administrative expenses: Selling expenses 11,800 19,600 Administrative expenses 6,900 6,500 Total selling and administrative expenses 17,900 17,100 Net operating income 22,670 10,900 Interest expense 1,000 1,000 Net income before taxes 21,670 9,900 Income taxes 8.668 3,960 Net income 13,002 5,940 Dividends to common stockholders 240 600 Net Income added to retained earnings 12,762 5,340 Beginning retained earnings 36,280 30,940 Ending retained earnings $49,042 $36,280 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.) 1 Accounts receivable turnover 2 3 14. 15 6 Average collection period inventory turnover Average sale period. Operating cyde Total a mover
