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 the year was $20. All of the company's sales Bre on account Weller Corporation Comparative Balance Sheet (dollars in thousanda) This Year Last Year $ 1,240 9,300 12.800 790 -24,030 $ 1,350 6,800 11.800 540 20,290 10,200 42,121 52/321 576,351 10,200 39.330 49.530 $69,820 Assets Current Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current sets Property and equipment Land Buildings and equipment, bet Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Meerued 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 Betained earnings Total stockholdere equity Total liabilities and stockholders' equity $20,500 910 150 21,560 $10,400 0 150 19,300 9,500 21.050 2.500 20000 700 4.000 4,100 40.591 700 6.000 4,700 36.220 41.020 569,820 $76,351 Ch Chi Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 4,700 40,591 45,291 $76,351 4,700 36,320 41,020 $69,820 aces Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $72,345 $65,000 Cost of goods gold 45,510 37,000 Gross margin 26.835 20,000 Selling and administrative expenses. Selling expenses 11,500 10,400 Administrative expenses 6,800 6,600 Total selling and administrative exponton 18,300 17.000 Not operating income 8.535 11,000 Interest expense 950 950 Net income before taxes 7,585 10,059 Income taxes 3,034 4,020 Net Income 4,551 6.030 Dividends to common stockholders 280 350 Net income added to retained earnings 4,271 5,680 Beginning retained earnings 36, 320 30,640 Ending retained earnings $40,591 $36,320 Required: Compute the following financial data for this year: 1. Accounts receivable tumover (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.)
