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 $25. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,240 10,200 $ 1,270 7.00 12, 650 9.200 44,042 53,242 $77,732 20,352 29,552 $69,212 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: 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: Connon stock Additional paid in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $18,700 $20,20 1,01 180 21,39e 19,590 9.800 9. 6 4. 41.942 35.222 . 560,212 577,732 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales 573.100 $66.000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses 10.se 12,600 Administrative expenses 6,70 Total selling and administrative expenses 17,600 Net operating income 12,580 3.700 Interest expense Net Income before taxes 11.00 7.72 Income taxes Net Income 6,90 Dividends to connon stockholders Net Income added to retained earnings 6,72e Beginning retained earnings 35,222 21.ece Ending retained earnings se, $35,222 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.)
