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 $24. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,230 10,900 12,500 610 25, 240 $ 1,400 6,600 11,700 610 20, 310 10,700 48, 861 59,561 $ 84,801 10,700 38,455 49, 155 $ 69,465 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 $ 20,300 960 270 21,530 $ 18,100 710 270 19, 080 9,000 30,530 9,000 28,080 500 4,000 4,500 49,771 54,271 $ 84, 801 500 4,000 4,500 36,885 41,385 $ 69,465 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands ) This Year Last Year Sales $ 82,250 $ 65,000 Cost of goods sold 41, 140 36,000 Gross margin 41,110 29,000 Selling and administrative expenses: Selling expenses Administrative expenses 11,400 10,600 7,000 6,800 Total selling and administrative expenses 18,400 17,400 Net operating income 22, 710 11,600 Interest expense 900 900 Net income before taxes 21,810 10,700 Income taxes 8,724 4,280 Net income 13,086 6,420 Dividends to common stockholders 200 375 Net income added to retained earnings 12,886 6,045 Beginning retained earnings 36,885 30,840 Ending retained earnings $ 49,771 $ 36,885 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.) Total turno (Round your answer 2 decimal places.) days Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days
