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 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, 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 $18. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: 1,280 12,300 9,700 $ 1,560 9,100 8,200 1,8002,100 25,08020,960 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land 6,000 6,000 19,200 19,000 25,000 $45,960 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: 25,200 $50,280 $ 9,500 8,300 700 300 9,300 Accounts payable Accrued liabilities Notes payable, short term 600 300 10,400 rrent liabilities Total cu Long-term liabilities: Bonds payable 5,0005,000 15,40014,300 Total liabilities Stockholders' equity: 800 4,200 800 4,200 Common stock Additional paid-in capital 5,000 29,880 34,880 311000- 5, 000 Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 26,660 $50,280 $45,960 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: $79,000 $74,000 52,000 48,000 27,00026,000 8,000 11,000 19,000 7,000 600 6,400 2,3602,560 3,840 600 3,240 23,420 $29,880 $26,660 8,500 12,000 20,500 6,500 600 5,900 Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 3,540 320 3,220 26,660 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.) 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.) 7.38 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover 49.46 days 5.81 62.82 days 168.53 days 1.64 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 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, 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 $18. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: 1,280 12,300 9,700 $ 1,560 9,100 8,200 1,8002,100 25,08020,960 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land 6,000 6,000 19,200 19,000 25,000 $45,960 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: 25,200 $50,280 $ 9,500 8,300 700 300 9,300 Accounts payable Accrued liabilities Notes payable, short term 600 300 10,400 rrent liabilities Total cu Long-term liabilities: Bonds payable 5,0005,000 15,40014,300 Total liabilities Stockholders' equity: 800 4,200 800 4,200 Common stock Additional paid-in capital 5,000 29,880 34,880 311000- 5, 000 Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 26,660 $50,280 $45,960 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: $79,000 $74,000 52,000 48,000 27,00026,000 8,000 11,000 19,000 7,000 600 6,400 2,3602,560 3,840 600 3,240 23,420 $29,880 $26,660 8,500 12,000 20,500 6,500 600 5,900 Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 3,540 320 3,220 26,660 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.) 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.) 7.38 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover 49.46 days 5.81 62.82 days 168.53 days 1.64
