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 $21. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,180 $ 1,310 Accounts receivable, net 10,900 8,500 Inventory 13, 100 12,500 Prepaid expenses 660 59e Total current assets 25,840 22,900 Property and equipment: Land Buildings and equipment, net 9,800 9,800 48,816 35,828 Total property and equipment 58,616 44,828 Total assets $84,456 $67,728 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $19,700 $17,900 Accrued liabilities 910 760 Notes payable, short tern 260 260 Total current liabilities 20,870 18,928 Long-term liabilities: Bonds payable 9,200 9,200 Total liabilities 30,070 28. 120 Stockholders' equity: Common stock 600 600 Additional paid-in capital 4,000 4.000 Total paid-in capital 4,600 4,600 Retained earnings 49,785 35,008 Total stockholders' equity 54/386 39,608 Total liabilities and stockholders' equity $84,456 $67,728 Welter Corporation Connarative Income Statement and Reconciliation Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $82,450 $65,000 Cost of goods sold 38.400 41,000 Gross margin 44,050 24,000 Selling and administrative expenses: Selling expenses 11,000 10,100 Administrative expenses 7,100 6,200 Total selling and administrative expenses 18, 100 16,300 Net operating income 25,950 7,700 Interest expense 920 920 Net incone before taxes 25,030 Income taxes 6,780 10,012 2,712 Net income 15,018 Dividends to common stockholders 4,068 240 600 Net income added to retained earnings 14,778 3,468 Beginning retained earnings 35,088 31,540 Ending retained earnings $49,786 $35,808 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 focovablo tumover 2 Average collection penod Inventory tumover 4 Average sale period Operwing cycle days day days
