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 companys common stock at the end of this year was $22. All of the companys sales are on account.
Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,190 10,800 13,900 780 26,670 $ 1,290 8,200 10,900 530 20,920 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total 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 term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: 9,600 48,620 58,220 $ 84,890 9,600 42,532 52,132 $ 73,052 $ 19,200 1,100 120 20, 420 $ 17,800 820 120 18,740 9,800 30, 220 9,800 28,540 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 600 4,000 4,600 50,070 54,670 $ 84,890 600 4,000 4,600 39,912 44,512 $ 73,052 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 80, 750 $ 66,000 Cost of goods sold 44,640 33,000 Gross margin 36,110 33,000 Selling and administrative expenses: Selling expenses 11,400 10,700 Administrative expenses 6,400 6,200 Total selling and administrative expenses 17,800 Net operating income 18,310 16,100 Interest expense 980 980 Net income before taxes 17,330 15,120 Income taxes 6,932 6,048 Net income 10,398 Dividends to common stockholders 240 600 Net income added to retained earnings 10,158 8,472 Beginning retained earnings 39,912 31,440 Ending retained earnings $ 50,070 $ 39,912 16,900 9,072 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 turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days
