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 fast year and $0,40 this year. The market value of the company's common stock at the end of this year was $24. All of the company's soles are on account Welter Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash 5.1.130 Accounts receivable, net $ 1.380 10,700 8,200 Inventory 12,600 12,100 Prepaid expenses 680 570 Total current assets Property and equipment: Land 20,400 10,400 buildings and equiprent, net 52.410 36,402 Total property and equipment 62,010 Total assets 507,920 569,052 Libilities and Stockholders' Equity Current Liabilities Accounts payable $20,400 S18,200 Accrued Liabilities 1.040 740 Notes payable, short tern 240 240 Total current liabilities 21,680 19,8 Long-ter Liabilities Bonds payable 9,360 9.100 Total liabilities 30,980 28,40 Stockholders' equity! Connon stock 500 600 Additional Bad-in capital 4.000 4.000 Total paid-in capital 4,600 4.600 Retained earnings 52,340 35,972 Total stockholders equity 56940 40,572 Total liabilities and stockholders' equity 587,920 $69,052 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $83, 160 $64,000 Cost of goods sold 37,950 37,000 Gross margin 46, 110 27,000 Selling and administrative expenses: Selling expenses 10,800 10,200 Administrative expenses 6,700 6,400 Total selling and administrative expenses 17,500 16,600 Net operating income 28,610 10,400 Interest expense 930 930 Net Income before taxes 27,680 9,470 Income taxes 11,072 3,788 Net income 16,608 5,682 Dividends to common stockholders 240 450 Net income added to retained earnings 16,368 5,232 Beginning retained earnings 35,972 30,740 Ending retained earnings $52,340 $35,972 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.) 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 tumover 2 Average collection period 3. Inventory tumover 4 Average sale period 5: Operating cycle 8. Totalturnover days days
