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 $22. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,120 9,300 12,000 720 23,140 $ 1,210 7,200 12,400 640 21,450 10,700 48,549 59,249_ $82,389 10,700 40,796 51,496 $72,946 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 $ 20,400 1,070 290 21,760 $18,700 770 290 19,760 9,400 31,160 9,400 29,160 600 600 4,000 4,000 4,600 4,600 46,629 39,186 51,22943, 786 $82,389 $72,946 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $73, 425 $ 65,000 Cost of goods sold 41,480 33,000 Gross margin 31,945 32,000 Selling and administrative expenses: Selling expenses 11,000 10,400 Administrative expenses 7,200 6,500 Total selling and administrative expenses 18,200 16,900 Net operating income 13,745 15,100 Interest expense 940 940 Net income before taxes 12,805 14,160 Income taxes 5,122 5,664 Net income 7,683 8,496 Dividends to common stockholders 240 450 Net income added to retained earnings 7,443 8,046 Beginning retained earnings 39,186 140 Ending retained earnings $46,629 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.)
