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 companys common stock at the end of this year was $18. All of the companys sales are on account.

Compute the following:

1. Operating cycle.

2. Total asset turnover.

3. Equity multiplier

4. Return on total assets

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 1,280 1,560 200 2,100 20,960 9,700 25,080 6,000 Total current assets Property and equipment: ,000 19,000 Land 19,200 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: 25,200251000- $50,280 $45,960 Accounts payable Accrued liabilities Notes payable, short term $ 9,500 8,300 600 10,400 5,000 Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders'equity: 15,400 800 5,000 14,300 800 Common stock 200 26,660 $50,280 $45,960 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total 1iabilities and stockholders' equity 29,880 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: $79,000 $74,000 52,00048,000 -477000 26,000 8,000 11,000 19.000 7,000 600 6, 400 8,500 12,000 20,500 6,500 600 5,900 2,360 Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 600 220 26,66023,420 $29,880 $26,660 Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 1,280 1,560 200 2,100 20,960 9,700 25,080 6,000 Total current assets Property and equipment: ,000 19,000 Land 19,200 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: 25,200251000- $50,280 $45,960 Accounts payable Accrued liabilities Notes payable, short term $ 9,500 8,300 600 10,400 5,000 Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders'equity: 15,400 800 5,000 14,300 800 Common stock 200 26,660 $50,280 $45,960 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total 1iabilities and stockholders' equity 29,880 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: $79,000 $74,000 52,00048,000 -477000 26,000 8,000 11,000 19.000 7,000 600 6, 400 8,500 12,000 20,500 6,500 600 5,900 2,360 Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 600 220 26,66023,420 $29,880 $26,660