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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the year was $23. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 1,130 $ 1,390 9,500 6,800 13,600 10,700 750680 Total current assets 24,980 19,570 Property and equipment: Land Buildings and equipment, net 9,000 9,000 42,95138,100 Total property and equipment 51,951 47,100 Total assets $76,931 $66,670 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $19,100 1,060 220 $18,100 800 220 20,380 19,120 Total current liabilities Long-term liabilities: Bonds payable 9,500 9,500 Total liabilities 29,880 28,620 Stockholders' equity: Common stock Additional paid-in capital 500 4,000 500 4,000 Total paid-in capital Retained earnings 4,500 42,551 4,500 33,550 Total stockholders' equity 47,051 38,050 Total liabilities and stockholders' equity $76,931 $66,670 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $77,425 $65,000 Cost of goods sold 43,740 41,000 Gross margin 33,685 24,000 Selling and administrative expenses: Selling expenses Administrative expenses 10,600 6,800 10,800 6,900 Total selling and administrative expenses 17,400 17,700 Net operating income Interest expense 16,285 950 6,300 950 Net income before taxes Income taxes 15,335 6,134 5,350 2,140 Net income Dividends to common stockholders 9,201 200 3,210 500 Net income added to retained earnings Beginning retained earnings 9,001 33,550 2,710 30,840 Ending retained earnings $42,551 $33,550 Required: Compute the following financial data for this year: Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) Accounts receivable turnover Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average collection period days Inventory turnover. (Round your answer to 2 decimal places.) Inventory turnover Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average sale period days Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) Operating cycle days Total asset turnover. (Round your answer to 2 decimal places.)
