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 $20. 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 $ 1,160 $ 1,330 Accounts receivable, net 9,600 8,100 Inventory 12, 100 11,300 Prepaid expenses 600 700 Total current assets 23,460 21,430 Property and equipment: Land 10,600 10,600 Buildings and equipment, net 50,612 37,175 Total property and equipment 61,212 47,775 Total assets $84,672 $69, 205 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $19,400 $17,900 Accrued liabilities 1,630 810 Notes payable, short term 220 220 Total current liabilities 20,650 18,930 Long-term liabilities: Bonds payable 9,500 9,500 Total liabilities 30,150 28, 430 Stockholders' equity: Common stock 500 Additional paid-in capital 4,000 Total paid-in capital 4,500 4,500 Retained earnings 50,022 36,275 Total stockholders' equity 54,522 40,775 Total Liabilities and stockholders' equity $84,672 $69, 205 500 4,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $78,765 $64,000 Cost of goods sold 36,270 37,000 Gross margin 42,495 27,000 Selling and administrative expenses: Selling expenses 10,900 10,100 Administrative expenses 7,400 6,600 Total selling and administrative expenses 18,300 16,700 Net operating income 24,195 10,300 Interest expense 950 950 Net income before taxes 23,245 9,350 Income taxes 9,298 3,740 Net income 13,947 5,610 Dividends to common stockholders 200 375 Net income added to retained earnings 13,747 5,235 Beginning retained earnings 36,275 31,040 Ending retained earnings $50,022 $36,275 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 turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days
