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 $28. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,090 9,300 13,000 640 24,030 $ 1,370 8,000 11,600 620 21,590 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 10,800 52,561 63,361 $87,391 10,800 40,760 51,560 $73,150 $19,300 910 160 20,370 $18, 100 850 160 19, 110 9,500 29,870 9,500 28,610 Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 600 4,000 4,600 52,921 57,521 $87,391 600 4,000 4,600 39,940 44,540 $73,150 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $78,715 $66,000 Cost of goods sold 38, 130 32,000 Gross margin 40,585 34,000 Selling and administrative expenses: Selling expenses 11,100 10,500 Administrative expenses 6,500 6,800 Total selling and administrative expenses 17,600 17,300 Net operating income 22,985 16,700 Interest expense 950 950 Net income before taxes 22,035 15,750 Income taxes 8,814 6,300 Net income 13,221 9,450 Dividends to common stockholders 240 450 Net income added to retained earnings 12,981 9,000 Beginning retained earnings 39,940 30,940 Ending retained earnings $52,921 $39,940 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.) 1. Accounts receivable turnover days 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle days days 6. Total asset turnover
