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 $28. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assetsi Cash $ 1,270 5 1,400 Accounts receivable, net 10,800 7,700 Inventory 13,700 10,700 Prepaid expenses 730 650 Total current assets 26,500 20,450 Property and equipmenti Land 9,400 9,400 Buildings and equipment, net 51,592 35,430 Total property and equipment 60.932 46830 Total assets 587,432 $ 65,280 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 5. 19,900 $ 17,500 Accrued liabilities 1.060 760 Notes payable, short term 120 Total current liabilities 21.080 18.30 Long-term liabilities Bonds payable 5,500 3,500 Total liabilities 29,550 26.380 Stockholders' equity! Connon stock 600 600 Additional paid in Capital 4.000 Total paid in capital 4.600 4.600 Retained earning 53252 30.000 Total stockholders' equity 52 353 10,400 Total liabilities and stockholders' equity $87.433 5.85.250 120 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 86,950 $ 65,000 Cost of goods sold 35, 380 42,000 Gross margin 51,570 23,00 Selling and administrative expenses: Selling expenses 11,200 10,000 Administrative expenses 6.700 6,309 Total selling and administrative expenses 17,900 16,300 Net Operating income 33,670 6,700 Interest expense 850 850 Net Income before taxes 32,820 5,850 Income taxes 13,128 2.340 Net Income 19,692 3,510 Dividends to common stockholders 240 450 Net Incone added to retained earnings 19,452 3,060 Beginning retained earnings 33 300 30.740 Ending retained earnings 5 53,252 $ 39,800 Required: Compute the following financial data for this year 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.)
