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 company's common stock at the end of this year was $18. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Last Year Year Assets Current assets: Cash 1,280 1,560 Accounts receivable, net 12,300 9,100 Inventory 9,700 8,200 Prepaid expenses 1,800 2,100 CE Total current assets 25,080 20,960 Property and equipment: Land Buildings and equipment, net Total property and equipment 6,000 6,000 19,200 19,000 25,200 25,000 Total assets $ $ 50,288 45,960 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: Common stock $ $ 9,500 8,300 600 700 300 300 10,400 9,300 5,000 5,000 15,400 14,300 800 800 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 4,200 4,200 5,000 5,000 29,888 26,660 Total liabilities and stockholders' equity Weller Corporation 34,888 31,660 $ $ 50,280 45,960 Comparative Income Statement and Reconciliation (dollars in thousands) This Last Year Year $ $ Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net incone before taxes Income taxes Net income 79,000 74,000 52,000 48,000 27,000 26,000 8,500 8,000 12,000 11,000 20,500 19,000 6.500 600 5,900 7,000 600 6,400 2,360 2,560 Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 3,540 320 3,840 600 3,220 3,240) 26,668 23,420 $ 5 29.880 26.660 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: Common stock Additional paid-in capital Retained earnings Total paid-in capital Total stockholders' equity $ 9,500 8,300 600 700 300 300 10,400 9,300 5,000 5,000 15,400 14,300 4,200 800 800 4,200 5,000 5,000 29,888 26,660 34,880 31,660 $ $ Total liabilities and stockholders' equity 50,288 45,968 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling expenses Selling and administrative expenses: Administrative expenses This Last Year Year $ $ 79,000 74,000 52,000 48,000 27,000 26,000 8,500 8,000 12,000 11,000 Total selling and administrative expenses 20,500 19,000 Net operating income Interest expense Net income before taxes Income taxes Net income 6,500 7,000 600 5,900 600 6,400 2,360 2,560 Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year. 3,548 3,840 320 600 3,220 3,240 26,660 23,420 $ $ 29,880 26,660 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 7.38 turnover 2. Average collection period days 3. Inventory turnover 5.81 4. Average sale period days 5. Operating cycle days 6. Total asset turnover 1.64