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 the year was $24. All of the company's sales are on account This Year Last Year $ 1,110 10,600 13,700 670 26,880 $1,250 7,200 11,300 598 20, 340 9,500 45,436 54,936 $81,016 9,500 41, 264 50,764 $71,104 Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 liabiuties and stockholders' equity $18,200 770 160 $19,600 990 160 20,750 9,100 29,850 19,1301 9,100 28,230 600 4,000 4,600 46,566 51,166 $81,016 600 4,000 4,600 38,274 42,874 $71,104 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $77,430 $66,000 Cost of goods sold 45,000 35,000 Gross margin 32,430 31.000 Selling and administrative expenses: Selling expenses 18,600 10,700 Administrative expenses 6,700 7,000 Total selling and administrative expenses 17,300 17,700 Net operating income 15, 130 13,300 Interest expense 910 910 Net income before taxes 14,220 12,398 Income taxes 5,688 4,956 Net income 8,532 7.434 Dividends to common stockholders 240 380 Net income added to retained earnings 8,292 7,134 Beginning retained earnings 38,274 31,140 Ending retained earnings $46,566 $38, 274 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 6. Total asset tumover days days
