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 $29. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,210 9,500 13,900 640 25,250 $ 1,380 8,400 11,900 510 22,190 10,400 43,934 54,334 $79,584 10,400 37,682 48,082 $70,272 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 $18,800 980 170 19,950 $18,900 880 170 19,950 8,800 28,750 8,800 28,750 600 4,000 4,600 46,234 50,834 $79,584 600 4,000 4,600 36,922 41,522 $70,272 Last Year $65,000 36,000 29,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $78,760 Cost of goods sold 43,860 Gross margin 34,900 Selling and administrative expenses: Selling expenses 11,000 Administrative expenses 7,100 Total selling and administrative expenses 18,100 Net operating income 16,800 Interest expense 880 Net income before taxes 15,920 Income taxes 6,368 Net income 9,552 Dividends to common stockholders 240 Net income added to retained earnings 9,312 Beginning retained earnings 36,922 Ending retained earnings $46,234 10,600 6,800 17,400 11,600 880 10,720 4,288 6,432 450 5,982 30,940 $36,922 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
