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 $24. All of the company's sales are on account This Year Last Year $1,110 10,200 13,600 240 25.650 $ 1,250 7,600 12,200 610 21,660 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 Buildings and equipment, net Total property and equipment Total assets 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 Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 9.100 47,296 56.396 $ 82,046 9,100 40.610 49.210 $ 71,370 $ 19,100 1.000 240 20,340 $ 18,000 810 240 19,050 9,500 29.840 9.500 28,550 700 4,000 4.700 47.506 52,206 $82,046 700 4.000 4.700 38,120 42.820 $ 71,370 Prey 4 of 5 !!! Next > d 950 950 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousanda) This Year Last Year Sales $ 77,430 $ 65,000 Coat of goods sold 42,570 34,000 Gross margin 34,860 31,000 Selling and administrative expenses Selling expenses 11,400 10,000 Administrative expenses 6,400 7,000 Total selling and administrative expenses 17.800 17,000 Net operating income 17,060 14,000 Interest expense Net incone before taxes 16, 110 13,050 Income taxes 6,444 5.220 Net income 9.666 7,830 Dividends to common stockholders 350 Net income added to retained earning 9,386 7.480 Beginning retained earnings 38,120 30,640 Inding retained earnings $ 47,506 $ 38,120 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.) 280 days 1. Accounts receivable tumover 2. Average collection period 3. Inventory tumover 4. Average sale period 5. Operating cycle Tot var days days
