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 $29. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,190 9.300 12,600 620 23,710 $ 1,310 7.100 11,700 660 20,770 10,500 46,660 57,160 $80,870 10,500 40,364 50,864 $71,634 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 $19,300 970 160 20,430 $18,400 740 160 19,300 8,100 28,530 8,100 27,400 600 4,000 4,600 600 4,000 4,600 47,740 52.340 $80,870 39,634 44,234 $71,634 Last Year $66,000 33.000 33,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $76,260 Cost of goods sold 43,740 Gross margin 32,520 Selling and administrative expenses: Selling expenses 10,900 Administrative expenses 6,900 Total selling and administrative expenses 17,800 Net operating income 14,720 Interest expense 810 Net income before taxes 13,910 Income taxes 5,564 Net income 8,346 Dividends to common stockholders 240 Net income added to retained earnings 8,106 Beginning retained earnings 39,634 Ending retained earnings $47,740 10,100 6,600 16.700 16.300 810 15,490 6,196 9,294 300 8,994 30,640 $39,634 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 days 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle days days 6. Total asset turnover References
