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 600,000 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 $27. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,240 9,600 12,900 660 24,400 $ 1,290 6,600 11,400 590 19,880 10,000 43, 558 53,558 $77,958 10,000 36,104 46,104 $65,984 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 $20,500 970 280 21,750 $18,900 880 280 20,060 8,100 29,850 8,100 28, 160 600 4,000 4,600 43, 508 48, 108 $77,958 600 4,000 4,600 33, 224 37, 824 $ 65,984 Last Year $ 64,000 41,000 23,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $72,900 Cost of goods sold 36,450 Gross margin 36, 450 Selling and administrative expenses: Selling expenses 10,900 Administrative expenses 7,200 Total selling and administrative expenses 18,100 Net operating income 18,350 Interest expense 810 Net income before taxes 17,540 Income taxes 7,016 Net income 10,524 Dividends to common stockholders 240 Net income added to retained earnings 10,284 Beginning retained earnings 33, 224 Ending retained earnings $43,508 10,600 6,700 17,300 5,700 810 4,890 1,956 2,934 450 2,484 30,740 $33, 224 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 Total asset turnover days days 6
