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 the year was $22. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,210		$	1,360
Accounts receivable, net		10,200			7,600
Inventory		12,800			12,200
Prepaid expenses		750			590
Total current assets		24,960			21,750
Property and equipment:
Land		10,700			10,700
Buildings and equipment, net		47,634			37,092
Total property and equipment		58,334			47,792
Total assets	$	83,294		$	69,542
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	18,800		$	17,800
Accrued liabilities		1,040			900
Notes payable, short term		220			220
Total current liabilities		20,060			18,920
Long-term liabilities:
Bonds payable		9,800			9,800
Total liabilities		29,860			28,720
Stockholders' equity:
Common stock		600			600
Additional paid-in capital		4,000			4,000
Total paid-in capital		4,600			4,600
Retained earnings		48,834			36,222
Total stockholders' equity		53,434			40,822
Total liabilities and stockholders' equity	$	83,294		$	69,542

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	80,100		$	65,000
Cost of goods sold		40,000			39,000
Gross margin		40,100			26,000
Selling and administrative expenses:
Selling expenses		11,300			10,100
Administrative expenses		6,400			6,200
Total selling and administrative expenses		17,700			16,300
Net operating income		22,400			9,700
Interest expense		980			980
Net income before taxes		21,420			8,720
Income taxes		8,568			3,488
Net income		12,852			5,232
Dividends to common stockholders		240			450
Net income added to retained earnings		12,612			4,782
Beginning retained earnings		36,222			31,440
Ending retained earnings	$	48,834		$	36,222

1. Accounts receivable turnover days 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days