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. \begin{tabular}{lrr} Total liabilities & 15,400 & 14,300 \\ \hline \begin{tabular}{l} Stockholders' equity: \\ Common stock \end{tabular} & 800 & 800 \\ Additional paid-in capital & 4,200 & 4,200 \\ \hline Total paid-in capital & 5,000 & 5,000 \\ Retained earnings & 29,880 & 26,660 \\ \hline Total stockholders' equity & 34,880 & 31,660 \\ \hline Total liabilities and stockholders' equity & $50,280 & $45,960 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \begin{tabular}{c} Weller Corporation \\ Comparative Income Statement and Recc \\ (dollars in thousands) \end{tabular} & \begin{tabular}{l} Thiliation \\ This Year \end{tabular} & Last Year \\ \hline Sales & $79,000 & $74,000 \\ \hline Cost of goods sold & 52,000 & 48,000 \\ \hline Gross margin & 27,000 & 26,000 \\ \hline Selling and administrative expenses: & & \\ \hline Selling expenses & 8,500 & 8,000 \\ \hline Administrative expenses & 12,000 & 11,000 \\ \hline Total selling and administrative expenses & 20,500 & 19,000 \\ \hline Net operating income & 6,500 & 7,000 \\ \hline Interest expense & 600 & 600 \\ \hline Net income before taxes & 5,900 & 6,400 \\ \hline Income taxes & 2,360 & 2,560 \\ \hline Net income & 3,540 & 3,840 \\ \hline Dividends to common stockholders & 320 & 600 \\ \hline Net income added to retained earnings & 3,220 & 3,240 \\ \hline Beginning retained earnings & 26,660 & 23,420 \\ \hline Ending retained earnings & $29,880 & $26,660 \\ \hline \end{tabular} Required: Compute the following financial data for this year: 1. Accounts receivable turnover. (Assume that all sales are on account.) Note: Round your answer to 2 decimal places. 2. Average collection period. Note: Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places. 3. Inventory turnover. Note: Round your answer to 2 decimal places. 4. Average sale period. Note: Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places. 5. Operating cycle. Note: Round your intermediate calculations and final answer to 2 decimal places. 6. Total asset turnover. Note: Round your answer to 2 decimal places
