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 700,000 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 $27. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current ansetni Cash $1,170 $ 1,370 Accounts receivable, net 9.500 6,600 Inventory 13,100 12,100 Prepaid expenses 800 650 Total current ansets 24,570 20, 720 Property and equipment Land 9,400 9.400 Buildings and equipment, net 39.445 40,105 Total property and equipment 43.845 49.505 Total assets $ 73, 415 $ 70,225 Liabilities and stockholders' Equity Current liabilitat Accounts payable $ 20,100 $ 18,700 Accrued liabilities 1,060 880 Notes payable, short term 270 270 Total current liabilities 21.430 19,050 tong-term liabilities Bonda payable 10.000 10,000 Total liabilities 31.030 29.050 stockholders' equity Common stock 700 700 Maditional paid in capital 4,000 4.000 Total pald-in capital 4,700 4.700 Retained earning 32285 3,675 Total stockholders equity 41.985 40.375 Total liabilities and stockholders' equity $ 73,615 5.70.225 Last Year $ 64,000 37.000 27,000 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 69,230 Cost of goods sold 47,880 Gross margin 21,350 Selling and administrative expenses Selling expenses 10,700 Administrative expenses 6,500 Total selling and administrative expenses 17,200 Net operating income 4,150 Interest expense 1.000 Net income before taxes 3,150 Income taxes 1,260 Net Income 1.890 Dividends to common stockholders 280 Net income added to retained earnings 1,620 Beginning retained earnings 35.675 Ending retained earnings $ 37,285 10,300 6,600 16,900 10,100 1.000 9.100 3,640 5, 460 525 4,935 30,740 $ 35,675 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
