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. nts Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year eBook Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expense:s $ 1,140 1,260 7,000 12,30011,900 540 Print 10,600 780 -4 82a 20,700 Total current assets Property and equipment: 10,900 36, 542 47,442 $82,384 $68,142 Land 10,900 46,664 57,564 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $18,900 $19,100 720 230 20,120 20,050 990 230 Total current liabilities Long-term liabilities: Bonds payable 9,300 9,300 Total liabilities Stockholders' equity: -29,420 29,350 Common stock Additional paid-in capital 600 4,000 4,600 600 4,000 4,600 Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $82,384 $68,142 48,364 52,964 34,192 38,792 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: $77,440 $64,000 35,090 40,000 42,35024,969 Selling expense:s 10,800 6,600 17,400 24,950 930 24,020 9,608 14,412 240 14,172 34,192 10,400 6,500 16,900 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 00 7,100 930 6,170 2.468 3,702 450 3,252 30,940 $48,364 $34,192 Requirec Compute the following financial data for this year: 1. Accounts receivable turnover. (Assume that all sales are on account) (Round your answer to 2 declmal places.) 2 Average collection period. (Use 365 days In a year. Round your Intermedlate calculetions and final answer to 2 declmal places.) 3. Inventory turnover. (Round your answer to 2 declmal places.) 4. Average sale period. (Use 365 days In a year. Round your Intermedlete calculations and final answer to 2 declmal places.) 5. Operating cycle. (Round your Intermedlete calculetions and final answer to 2 decimal places.) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $82,384 $68,142 48,364 52,964 34,192 38,792 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: $77,440 $64,000 35,090 40,000 42,35024,969 Selling expense:s 10,800 6,600 17,400 24,950 930 24,020 9,608 14,412 240 14,172 34,192 10,400 6,500 16,900 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 00 7,100 930 6,170 2.468 3,702 450 3,252 30,940 $48,364 $34,192 Requirec Compute the following financial data for this year: 1. Accounts receivable turnover. (Assume that all sales are on account) (Round your answer to 2 declmal places.) 2 Average collection period. (Use 365 days In a year. Round your Intermedlate calculetions and final answer to 2 declmal places.) 3. Inventory turnover. (Round your answer to 2 declmal places.) 4. Average sale period. (Use 365 days In a year. Round your Intermedlete calculations and final answer to 2 declmal places.) 5. Operating cycle. (Round your Intermedlete calculetions and final answer to 2 decimal places.) Required: Compute the following financial data and ratios for this year 1. Working capital. (Enter answer In thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 1. Working capital 2. Current ratio 3. Acid-test ratio
