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 $25. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,080 9,400 12,500 720 23,700 $ 1,250 7,600 11,000 630 20,480 9,500 48,103 57, 603 $ 81,303 9,500 37,304 46,804 $ 67,284 Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment Land Buildings and equipment, net! Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Acerued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stoelholders' equity Common stock Additional paid-in capital Total paid in capital Betained earnings Total stockholders' equity $ 19,000 910 230 20,140 $ 19,400 840 230 20,470 9.600 28,740 8,600 29,070 600 4.000 4,600 47.963 52,563 600 4,000 4.600 33,514 38,214 are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,080 9,400 12,500 720 23,700 $ 1,250 7,600 11,000 630 20,480 9,500 48, 103 57,603 $ 81,303 9,500 37,304 46,804 $ 67,284 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 19,000 910 230 20,140 $ 19,400 840 230 20, 470 8,600 28, 740 8,600 29,070 600 4,000 4,600 600 4,000 4,600 33,614 38,214 $ 67,284 52, 563 $ 81, 303 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Retained earnings Total stockholders' equity Total liabilities and stockholders equity 47,963 52,563 $ 81,303 33,614 38,214 $ 67,284 Last Year $ 65,000 42,000 23,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 77,350 Cost of goods sold 34,075 Gross margin 43,275 Selling and administrative expenses Selling expenses 10,800 Administrative expenses 7,300 Total selling and administrative expenses 18.100 Net operating Income 25, 175 Interest expense 860 Het income before taxes 24,315 Income taxes 9,726 Net Income 14,589 Dividends to cotton stockholders 240 Net income added to retained earnings 14,349 Beginning retained earnings 33.614 Ending retained earnings $ 47,963 10,300 6,800 17, 100 5,900 860 5,040 2.016 3,024 450 2,574 31,040 $ 33,614 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 sole 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 receivable turnover Total selling and administrative expenses Net operating income Interest expense Net Income before taxes Income taxes Net income Dividends to common stockholders Net Income added to retained earnings Beginning retained earnings Ending retained earnings 18,100 25,175 360 24,315 9.726 14,589 240 14,349 33,614 $ 47,963 17,100 5.900 B60 5,040 2,016 3,024 450 2,574 31,040 $ 33,614 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 tumover 4. Average sale period 5. Operating cycle 6. Total asset tumover days days
