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 50 75 last year and $0.40 this year. The market value of the company's common stock at the end of the year was $30. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1.100 9,700 13,400 630 24,30 $ 1,310 6,800 10.600 520 19,230 Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Bulldings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term 10,500 39,142 10,500 47.119 57,819 $82,649 $68,872 $13,500 1,050 200 $18.800 720 200 $ 1,100 9,700 13,400 638 24,830 $ 1,310 6,800 10,600 52e 19,230 10,500 47,319 57,819 $82,649 10,500 39, 142 49,642 $68,872 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 $18,500 1,050 200 19,750 $18,800 720 200 19, 720 8,800 28,550 8,800 28,520 500 4,000 4,500 49,599 54,099 $82.649 500 4,000 4,500 35,852 40,352 $68.872 Last Year $65,000 39,000 26,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $76,725 Cost of goods sold 34,800 Gross margin 41,925 Selling and administrative expenses: Selling expenses 10,800 Administrative expenses 7,000 Total selling and administrative expenses 17,800 Net operating income 24, 125 Interest expense 880 Net income before taxes 23, 245 Income taxes 9,298 Net income 13,947 Dividends to common stockholders 200 Net income added to retained earnings 13, 747 Beginning retained earnings 35,852 Ending retained earnings $49,599 10, 200 6,900 17,100 8,900 880 8,eze 3, 208 4,812 500 4,312 31,540 $35,852 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 tumover 4. Average sale period 5. Operating cycle 6 Total asset tumover days days
