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 $075 last year and $0.40 this year. The market value of the company's common stock at the end of the year was $28. All of the company's sales are on account This Year Last Year $ 1,080 10,700 12, 100 630 24,510 5 1,390 7,400 18,900 630 20,320 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 tern Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid in capital 9,900 54,490 64, 390 585,9ee 9,900 38,054 47,954 565, 274 $19,400 1,950 290 20,74 $18, 200 740 290 19,230 2.600 30,340 bee 28,830 600 600 4,000 98% C search 9,689 30, 340 9,689 28,830 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 600 4,889 4,600 53,960 58,560 $88,900 600 4,099 4,680 34,844 39,444 568,274 Last Year $65,000 40,000 25,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $85,070 Cost of goods sold 33, 350 Gross margin 51, 720 Selling and administrative expenses: Selling expenses 11,380 Administrative expenses 7,200 Total selling and administrative expenses 18,500 Net operating income 33, 220 Interest expense 960 Net Income before taxes 32,260 Income taxes 12,904 Net income 19,356 Dividends to common stockholders 240 Net Income added to retained earnings 19, 116 Beginning retained earnings 34, 844 Ending retained earnings $53,960 10,700 6,500 17,200 7,800 960 6,840 2,736 4,184 300 3,884 31,840 $34, 844 Required: Required: Compute the following financial data for this year. 1. Accounts receivable tumover. (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 turnover 4. Average sale period 5. Operating cycle 5 Total asset turnover days Search O 985 RE
