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 company's common stock at the end of this year was $23. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year fast Year $ 1,180 10,200 12,500 760 24,640 $ 1,390 8,300 11,800 660 22,150 11,000 45, 350 56,350 $80,990 11,000 36,666 47,666 $69,816 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 11abilities: 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 $20,000 960 260 21,220 $17,600 880 260 18,740 3,900 30, 120 8.900 27,640 600 4,000 4,600 46,270 50,870 $80,990 600 4.000 4,600 37,576 42,176 $69,816 Welter Corporation Comparative Income Statement and Reconciliation (dollars in thousands) The Year Last Year Sales $79,550 Cost of goods sold $65,000 46.170 39,000 Cross margin 33,30 30,000 Selling and administrative expenses Selling expenses 11,200 10,000 Administrative expenses 5.400 6.500 Total selling and administrative expenses 12.600 17.300 Net operating income 15,780 12,700 Interest expense 890 890 Net income before taxes 14,890 11,010 Income taxes 5,956 4.724 Net income 8,934 7,086 Dividends to common stockholders 240 450 Net income added to retained earnings 8,694 6.636 Beginning retained earnings 37,576 30,940 Ending retained earnings 546,270 $37,576 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.) fi Total accetturnover (Round your answer to 2 decimal places.) 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
