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 this year was $27. All of the company's sales are on account. Weller Corporation Comparative Balance sheet (dollars in thousands) This Year Last Year $ 1,170 9,300 13,800 610 24,83e $ 1,220 7.800 11,500 680 20,400 18,300 43,672 53,972 $78.852 18,300 41,211 51,511 $71,911 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Tatal 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 tern Total current liabilities Long term liabilities: Bonds payable Total liabilities Stockholders' equity: Cormon stock Additional paid-in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $19,600 930 zee 28,730 $18.800 890 200 19,898 9,90 30, 630 9,900 29,790 7ee 4.000 4.700 43.522 48,222 $78,852 78e 4,890 4,700 37,421 42,121 $71,911 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $74,165 $66,330 Cost of goods sold 45,542 27.00 Gross margin 28,625 29,00 Selling and administrative expenses: Selling expenses 10,600 10,900 Administrative expenses 6,480 6.100 Total selling and administrative expenses 17,809 17,8 Net operating income 11,625 12.00 Interest expense 990 990 Net incone before taxes 10,635 11,810 Income taxes 4,254 4,404 Net incon 6.381 6.686 Dividends to common stockholders 280 525 Net incore added to retained carnings 6.101 6,081 Beginning retained carnings 37,421 31,340 Ending retained earnings $43,522 $37,421 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 sele 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.) days 1 Accounts receivable turnover 2 Average collection period 3. Inventory burnover 4. Average sale period 5. Operating cycle 8. Total asset turnover days days
