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 this year was $24. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets This Year Last Year Current assets: Cash Accounts receivable, net $ 1,240 $ 1,250 9,500 8,000 Inventory 13,900 Prepaid expenses 11,200 680 689 Total current assets 25, 320 21, 130 Property and equipment: Land 9,380 9,300 Buildings and equipment, net 50,623 40,980 Total property and equipment 59,923 50,280 Total assets $85,243 $71,410 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $19,900 $17,800 Accrued liabilities 910 760 Notes payable, short term 180 180 Total current liabilities 20,998 18,740 Long-term liabilities: Bonds payable 10,000 10,000 Total Habilities 30,990 28,740 Stockholders' equity: Common stock 600 600 Additional pald-in capital 4,000 4,000 Total paid-in capital 4,600 4,600 Retained earnings 49,653 38,070 Total stockholders' equity 54,253 42,678 Total liabilities and stockholders' equity $85,243 $71,410 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $81,375 $65,000 Cost of goods sold 42,670 34,000 Gross margin 38,705 31,000 Selling and administrative expenses: Selling expenses 19,900 10,400 Administrative expenses 7.100 6,800 Total selling and administrative expenses 18,000 17,200 Net operating income 20,705 13,800 Interest expense 1,200 1,000 Net income before taxes 19,705 12,800 Income taxes 7,882 5,120 Net income 11,823 7,680 Dividends to common stockholders 240 Net income added to retained earnings 11,583 7,230 Beginning retained earnings 38,070 30,840 Ending retained earnings $49,653 $38,070 450 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.)
