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 the year was $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,140 10,800 13,500 780 26,220 $ 1,260 6,800 11,300 580 19,940 10,900 38, 399 49,299 $ 75,519 10,900 36,549 47,449 $ 67,389 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 $18, 100 800 120 19,020 21.280 9,100 30,380 9,100 28,120 700 4,000 4,700 0,439 39 700 4,000 4,700 34,569 39,269 $67,389 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 75,680 $65,000 Cost of goods sold 47, 120 41,000 Gross margin 28,560 24,000 Selling and administrative expenses: Selling expenses 10,700 10,200 Administrative expenses 6,700 6,300 Total selling and administrative expenses 17,400 16,500 Net operating income 11,160 7,500 Interest expense Net income before taxes 6.59 Income taxes 4,100 2,636 Net income 6,150 3,954 Dividends to common stockholders 280 525 Net income added to retained earnings 5,870 3,429 Beginning retained earnings 34,569 31,140 Ending retained earnings $ 40, 439 $34,569 910 250 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.)
