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 500,000 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 $30. 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 $ 1,160 $ 1,280 Accounts receivable, net 10,500 7,100 Inventory 13,800 12,200 Prepaid expenses 710 580 Total current assets 26,170 21,160 Property and equipmenti Land 9,500 9,500 Buildings and equipoent, net 48,054 38,090 Total property and equipment 52,554 47,590 Total assets $83,724 $68,750 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $18,700 $18,900 Accrued liabilities 920 810 Notes payable, short term 290 Total current liabilities 19,910 20,000 Long-tern liabilities: Bonds payable 10, Bee 10,000 Total liabilities 29,910 30, cee Stockholders' equity Common stock 500 500 Additional paid in capital 4.000 4.000 Total paid in capital 4,500 4.5ee Retained earnings 49,314 34,25e Total stockholders' equity 53,814 38,750 Total liabilities and stockholders' equity $83,724 568,750 290 Last Year $65 , 41,000 24,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $81,840 Cost of goods sold 37,700 Gross margin 44,140 Selling and administrative expenses: Selling expenses 10,900 Administrative expenses 6,888 Total selling and administrative expenses 17,700 Net operating income 26,440 Interest expense 1, eee Net income before taxes 25,440 Income taxes 10,176 Net income 15,264 Dividends to common stockholders 200 Net income added to retained earnings 15,064 Beginning retained earnings 34,250 Ending retained earnings $49,314 10,200 6,700 16,900 7,100 1,000 6,1ee 2,440 3,660 25e 3,410 30,840 $34,250 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 de 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 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 turnover days days
