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 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 companys common stock at the end of this year was $26. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,270		$	1,400
Accounts receivable, net		11,000			7,600
Inventory		12,700			10,800
Prepaid expenses		690			580
Total current assets		25,660			20,380
Property and equipment:
Land		9,800			9,800
Buildings and equipment, net		51,276			39,641
Total property and equipment		61,076			49,441
Total assets	$	86,736		$	69,821
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,200		$	18,700
Accrued liabilities		910			890
Notes payable, short term		270			270
Total current liabilities		21,380			19,860
Long-term liabilities:
Bonds payable		8,900			8,900
Total liabilities		30,280			28,760
Stockholders' equity:
Common stock		700			700
Additional paid-in capital		4,000			4,000
Total paid-in capital		4,700			4,700
Retained earnings		51,756			36,361
Total stockholders' equity		56,456			41,061
Total liabilities and stockholders' equity	$	86,736		$	69,821

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	81,840		$	64,000
Cost of goods sold		36,425			36,000
Gross margin		45,415			28,000
Selling and administrative expenses:
Selling expenses		11,100			10,600
Administrative expenses		7,300			6,600
Total selling and administrative expenses		18,400			17,200
Net operating income		27,015			10,800
Interest expense		890			890
Net income before taxes		26,125			9,910
Income taxes		10,450			3,964
Net income		15,675			5,946
Dividends to common stockholders		280			525
Net income added to retained earnings		15,395			5,421
Beginning retained earnings		36,361			30,940
Ending retained earnings	$	51,756		$	36,361
3. You decide, finally, to assess the companys liquidity and asset management. For both this year and last year, compute: a. Working capital. b. The current ratio. (Round your final answers to 2 decimal places.) c. The acid-test ratio. (Round your final answers to 2 decimal places.) d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,670,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) e. The average sale period. (The inventory at the beginning of last year totaled $2,030,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) f. The operating cycle. (Round your intermediate calculations and final answers to 2 decimal place.) g. The total asset turnover. (The total assets at the beginning of last year totaled $13,070,000.) (Round your final answers to 2 decimal places.)