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 500,000 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 $075 lost year and $0.40 this year. The market value of the company's common stock at the end of this year was $26. All of the company's sales are on account. Weller Corporation Comparative Balance sheet (dollars in thousands) This Year Last Year $ 1,130 10,200 13,300 770 25,400 $ 1290 B.400 10.700 520 20,910 9,700 52,965 62,665 $88,065 9,700 39,315 49,015 $69,925 Assets Current assetat Cash Accounts receivable, not Inventory Prepaid expenses Total current assets Pro and equipment Land Buildings and equipment, net Total property and equipment Total sets Liabilities and Stockholders' Equity Current liabilities: Acounts payable Neergod liabiles Notes payable, short term Total current liabilities Long-term liabilities Sonds payable Total llabilties stockholders' equity Common stock Additional paid-in capital Total paid-in capital Tetained oamingo Total stockholderity Total liabilities and stockholders' equity $10.500 310 $18,800 870 180 19,850 19.590 9.500 29,090 9.500 20350 500 4,500 54,415 30.975 S88,065 500 471000 4,500 16.075 40,575 969,925 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $80,350 $65.000 Cost of goods sold 38.400 38.000 Gross margin 49,950 27,000 Selling and administrative expenses: Selling expenses 11,000 10,800 Administrative expenses 27,000 6,400 Total selling and administrative expenses 18,000 17,200 Net operating income 31.950 9.800 Interest expense 950 950 Net Income before taken 31,000 8,850 Income taxe 12,400 3.540 Net Income 18,600 5,320 Dividends to common stockholders 200 375 Net Income added to retained earnings 18,400 4,935 Beginning retained earnings 36, 075 31,140 Ending retained earnings 654,475 $36,075 1 ices Required: Compute the following financial date 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.) 1. Accounts receivable turnover 2 Average collection period 3. Inventory tumovec 14. Average sale period daya days MacBook Air Total selling and administrative expenses Net operating income Interest expense Net Income before taxes Income taxes Not income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earninga LVU 31,950 950 31,000 12,400 18,600 200 18.400 36,075 $54,475 Luu 9,800 950 8,850 3,540 5,310 375 4.935 31,140 $36,075 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.) days 1 Accounts receivable tumover 2 Average collection period 3. Inventory turnover 4 Average sale period 5. Operating cyclo 6. Total astot burnover days days
