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 800,000 shares of common stock were outstanding. The Interest rate on the bond payable was 12%, 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 $18. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,289 12,300 9,700 1.888 25,080 $ 1,568 9,120 8,200 2.1e8 20,960 6, eee 19,200 25. 209 6, eee 19,00 25.000 $50, 280 $45,960 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 $ 9,500 6ee Bee 10,488 $ 8,300 700 300 9,388 5, eee 15,408 5, eee 14.30 see 4.288 5, eee 29.888 800 4,200 5, eee 26,668 31.668 $45,968 34. 889 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $79, eee $74, eee Cost of goods sold 52,00 48,eee Gross margin 27,eee 26,000 Selling and administrative expenses: Selling expenses 8,500 8,000 Administrative expenses 12, eee 11,000 Total selling and administrative expenses 20,500 19,00 Net operating income 6,500 7, Interest expense 600 Net income before taxes 5,900 6,40e Income taxes 2.360 2,560 Net income 3,548 3,848 Dividends to common stockholders 6ee Net income added to retained earnings 3,240 Beginning retained earnings 26,668 23,428 Ending retained earnings $ 29,888 $ 26,668 608 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 intermediat 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 cycle 6. Total asset turnover days
