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 $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 $28. All of the company's sales are on account This Year Last Year 0 1.230 9.100 12,700 730 23.760 $1.310 3,100 11,700 620 21,230 9.500 49.220 50.620 502,380 Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets Cash Accounts receivable. net Inventory Prepaid expenses Total current assets Property and equipment: Land muildings and equipment, net Total property and equipment Totalte Liabilities and stockholders Equity Current Liabilitles Accounts payable Aderved liabilities Notes payable, short term Total current abilities Long-term abilities Bonde payable Total liabiti stockholderity Common took Maditional paid in capital Total paid.in capital Retained earning TOEST stockholders equity TO Lition and stockholders equity 9,500 34.514 44.014 $ 65,744 $ 20,100 1.090 170 21,360 18,300 020 170 19,290 0,100 20,460 21:30 500 0.000 4,500 0.420 32920 12:10 500 4000 4.500 >> 054 10.14 165,744 Last Year $ 64,000 40.000 24,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 80,840 Cost of goods sold 37,820 Gross margin 43,020 Selling and administrative expenses Selling expenses 10,700 Administrative expenses 6,900 Total selling and administrative expenses 17,600 Net operating income 25,420 Interest expense 810 Net income before taxes 24,610 Income taxe 9.844 Net income 14, 766 Dividends to common stockholders 200 Net Income added to retained earnings 14,566 Beginning retained earnings 33, B54 Ending retained earnings $ 48, 420 10,900 6.100 17.000 7,000 810 6,190 2,476 3,714 500 3, 214 30, 640 $ 33,854 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
