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. Weller Corporation Comparative Balance Sheet (dollars in thousands ) This Year Last Year $ 1,120 10,500 13,900 630 26,150 $ 1,230 7,000 12,000 530 20,760 9,300 45,355 54,655 $80,805 9,300 38,476 47,776 $68,536 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 $20,400 940 230 21,570 $17,600 870 230 18,700 8,900 30, 470 8,900 27,600 600 4,000 4,600 45,735 50,335 $80,805 600 4,000 4,600 36,336 40,936 $68,536 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $81,375 $66,000 Cost of goods sold 46,620 39,000 Gross margin 34,755 27,000 Selling and administrative expenses: Selling expenses 10,700 10,000 Administrative expenses 7,100 6,200 Total selling and administrative expenses 17,800 16, 200 Net operating income 16,955 10,800 Interest expense 890 890 Net income before taxes 16,065 9,910 Income taxes i 6,426 3,964 Se Net income 9,639 5,946 Dividends to common stockholders 240 450 Net income added to retained earnings 9,399 5,496 Beginning retained earnings Ending retained earnings $ 45,735 $36, 336 36,336 30,840 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.) 1. Accounts receivable turnover days 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days
