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 500,000 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 $29. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets. Cash $ 1,250 10.900 13.300 770 26,220 $ 1,300 7,500 10.800 560 20,160 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 10,100 53,661 63,761 $89,981 10.100 40.797 50,897 $71,057 $18,700 930 $17.500 790 190 190 18.480 19.820 8.800 28,620 .800 27.280 Stockholders' equity. Connon stock Additional paid-in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 4.000 4,500 56,861 61,361 $89,981 4.000 4.500 19.277 571,057 EU Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Year Last Year Sales $86,480 $65,000 Cost of goods sold 38,560 34,000 Gross margin 47,920 31,000 Selling and administrative expenses: Selling expenses 10,600 10,000 Administrative expenses 6,800 6,600 Total selling and administrative expenses 17,400 16,600 Net operating income 30,520 14,400 880 880 Interest expense Net income before taxes 29, 640 13,520 11,856 5,408 Income taxes Net income 17,784 8,112 200 375 Dividends to common stockholders 17,584 7, 737 Net income added to retained earnings 39,277 31,540 Beginning retained earnings $56,861 $39,277 Ending retained earnings 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 6. Total asset turnover days days
