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 $21. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,160 $ 1,330 Accounts receivable, net 10,200 8,300 Inventory 12,000 12,600 Prepaid expenses 610 590 Total current assets 23,970 22,820 Property and equipment Land 9,100 9,100 Buildings and equipment, net 55,700 36 296 Total property and equipment 64,800 45396 Total assets $ 88,770 $ 68,216 Liabilities and Stockholders' Equity current liabilities: Accounts payable $ 19,500 $ 17,600 Accrued liabilities 1.100 870 Notes payable. short term 260 200 Total current Labutis 21,160 18,730 Long-ter ltabilities: Bonds payable 9.900 9.900 Total abilities 31/60 28,630 Stockholders equity Common stock 500 500 Additional and in capital 4.000 4.000 Total paid in capital 4,500 4,500 Retained earnings 53.210 35,086 Total stockholders' equity 52210 39,586 Total liabilities and stockholders' equity 588,270 $ 68,216 Chec Last Year $ 65,000 40,000 25,000 Welter Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 85,100 Cost of goods sold 35,670 Gross margin 49, 430 Selling and administrative expenses: Selling expenses 10,800 Administrative expenses 7.100 Total selling and administrative expenses 17.900 Net operating inconte 31,530 Interest expense 990 Net Income before taxes 30,540 Income taxes 12,216 Net incone 18,324 Dividends to connon stockholders 200 Net income added to retained earnings 18,124 Beginning retained earnings 35,086 Ending retained earnings $ 53,210 10,000 6,600 16,600 8,400 990 7,410 2,954 4,446 500 3,946 31,140 5 35, 086 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.) 1. Accounts receivable turnover 2. Average collection period 3. Inventory tumover 4. Average sale period days days 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 pariod 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days
