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 $29. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $1,190 11,000 12,300 610 25, 100 $1,220 7,300 12,100 580 21,200 10.600 42.25 12,025 82,935 10.600 40220 50,28 22.028 Assets Current assets Canh Accounts receivable, net Inventory Prepaid expenses Total current sets Property and equipmenti Land buildings and equipment, net Total property and equipment Total asset Liabilities and stockholdere quity Current Labution Accounts payable Accrued alities Notes payable, short tern Total current liabilities Long-term liabilities Ronda payable Total liabilities stockholder equity Common stock Additional paid in capital Total paid-in capital Betained earning Total stockholders' equity total liabilities and stockholders' equity 19.000 900 130 20.00 $17.500 790 130 1.420 0.700 29.730 9700 20120 600 3.000 1,600 4.605 5205 $82,935 600 0.000 5.500 35,500 OR $72.020 Woller Corporation Last Year $ 65,000 33,000 32,000 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 79,605 Cost of goods sold 45,140 Gross margin 34.465 Selling and administrative expenses Selling expenses 12,100 Administrative expenses 6,500 Total selling and administrative expenses 17,600 Net operating income 16,865 Interest expense 970 Net Income before taxes 15,895 Income taxes 6,358 Net income 9,537 Dividends to common stockholders 240 Net income added to retained earnings 9,297 Beginning retained earnings 39,308 Ending retained earnings $ 48,605 10,300 6,700 17,000 15,000 970 14,030 5,612 8,418 450 7.968 31,340 $ 39,308 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 placen.) nces days 1. Accounts receivable turnover 2. Average collection period 3. Inventory tumove 4. Average sale period 5 Operating cycle 16. Total asset turnover days days
