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 Bilance sheet (dollars in thousands) This Year Last Year s 1.200 10,000 13.400 770 25370 1,350 7.000 11,000 S10 19.860 9.800 43016 52,016 $70,106 9.000 40, 360 50, 160 $70,020 Assets Current to Cash Accounts receivable, net Inventory Prepaid expenses Total current at Property and equipment Land Thuidinge and equipment, not Total property and equipment Total Liabilities and Stockholders' Equity Current liabilities Accounts payable Acred liabilitos Noton payable, short term Total current abilities Long term labilities Bonde payable Total Habilities Stockholders' equity Common stock Additional paid.in capital Total paid in capital Retained earning Total stockholders equity Total liabilities and stockholders' equity en 19,700 990 17,400 060 100 100 20.790 18,360 8.500 29,290 8.500 26860 600 4.000 4,600 44.296 49896 $ 70, 106 600 8.000 4.600 38.560 43, 160 20.020 Lant Year $ 65,000 33,000 32,000 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Salen $ 73,950 Cont of goods sold 45,140 Gross margin 28,810 Selling and administrative expenses: Selling expenses 11,400 Administrative expenses 6,600 Total selling and administrative expenses 18,000 Net operating income 10,810 Interont expense 850 Net Income before taxes 9,960 Income taxes 3,984 Net income 5,976 Dividends to common stockholders 240 Net income added to retained earnings 5,736 Beginning retained onrninga 38,560 Ending retained earning $ 44,296 20,900 6.800 17,700 14,300 850 13,450 5.380 8,070 450 7.620 30240 938,560 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
