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 700,000 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 $21. All of the company's sales are on account. This Year Last Year $ 1,100 9,000 13,000 630 23, 730 $ 1,380 7,900 10,900 550 20,730 10,000 45, 125 55, 125 $ 78,855 10,000 40,785 50,785 $ 71,515 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 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 $ 18,700 940 180 19,820 10,000 29,820 $ 17,500 880 180 18,560 10,000 28,568 700 4,000 4,700 44,335 49,035 $ 78,855 709 4,000 4,700 38,255 42,955 $ 71,515 Last Year $ 64,000 34,000 30,000 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 73,515 Cost of goods sold 44,215 Gross margin 29, 300 Selling and administrative expenses: Selling expenses 10,800 Administrative expenses 6,900 Total selling and administrative expenses 17,700 Net operating income 11,600 Interest expense 1,000 Net income before taxes 10,600 Income taxes 4,240 Net income 6,360 Dividends to common stockholders 280 Net income added to retained earnings 6,080 Beginning retained earnings 38,255 Ending retained earnings $ 44,335 10,000 6,600 16,680 13,400 1,000 12,400 4,960 7,440 525 6,915 31, 340 $ 38,255 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 intermdiate 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 turnover days days
