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 700,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the year was $25. 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 Accounts receivable, net Inventory Prepaid expenses $ 1.200 $1,220 10.900 6.600 13 500 11.500 780540 Total current assets 26,380 19,860 Land Property and equipment Buildings and equipment, net Total property and equipment 9.800 45,621 9,800 41.238 55,421 51,038 Total assets $81,801 $ 70,898 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $19.400 1.000 120 $ 19.000 870 120 20,520 19.990 Total current liabilities Long-term liabilities Bonds payable 9,200 9,200 Total liabilities 29.720 29.190 700 4,000 700 4,000 Stockholders' equity Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 4,700 47.381 4,700 37008 52.081 41,708 $81,801 $ 70,898 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $74 375 $ 66.000 Cost of goods sold 37.500 38,000 Gross margin 36,875 28,000 Selling and administrative expenses Selling expenses Administrative expenses 11.500 6,700 10,300 6.500 Total selling and administrative expenses 18,200 16,800 Net operating income Interest expense 18,675 920 11.200 920 Net Income before taxes Income taxes 17.755 7.102 10.280 4.112 Net Income Dividends to common stockholders 10,653 280 6.168 700 Net income added to retained earnings Beginning retained earnings 10,373 37,008 5.468 31.540 Ending retained earnings $47,381 $37,008 Required: Compute the following financial data for this year 1. Accounts receivable tumover. (Assume that all sales are on account.) (Round your answer to decimal places.) Accounts receivable turnover 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average collection period days 3. Inventory turnover (Round your answer to 2 decimal places.) Inventory turnover 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average sale period days 5. Operating cycle(Round your intermediate calculations and final answer to 2 decimal places.) Operating cycle days 6. Total asset turnover (Round your answer to 2 decimal places.) Total asset turnover
