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 $22. All of the company's sales are on account Weller Corporation Comparative Balance sheet (dollars in thousands) This Year Last Year $ 1,110 9,500 12,000 740 23, 350 $ 1,310 7,900 10,600 620 20, 430 9,600 53,364 62,964 $86, 314 9,600 40,794 50, 394 $ 70, 824 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 $19,700 1,060 290 21,050 $17,800 760 290 18,850 B, 600 29,650 B, 600 27,450 600 600 4,000 4,600 52,064 56, 664 $86,314 4,600 3B, 774 43,374 $ 70, 824 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $78,300 $ 66,000 Cost of goods sold 37,290 34,000 Gross margin 41,010 32,000 Selling and administrative expenses: Selling expenses 10,900 10,600 Administrative expenses 6,700 6,400 Total selling and administrative expenses 17,600 17,000 Net operating income 23,410 15,000 Interest expense 860 860 Net income before taxes 22,550 14, 140 Income taxes 9,020 5,656 Net income 13,530 B, 484 Dividends to common stockholders 240 450 Net income added to retained earnings 13,290 B,034 Beginning retained earnings 3B, 774 30, 740 Ending retained earnings $52,064 $38,774 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 turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days
