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 700,000 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 $27. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $1,250 1,230 6,800 12,100 620 Cash Accounts receivable, net Inventory Prepaid expenses 9,200 13,400 620 Total current assets Property and equipment: 24,470 20,750 Land 9,200 40,247 36,196 49,44745,396 $73,917 $66,146 9,200 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $20,500 $18,400 840 130 19,370 980 130 21,610 Total current liabilities Long-term liabilities: 8,400 30,010 8,400 27,770 Bonds payable Total liabilities stockholders' equity: 700 Common stock Additional paid-in capital 700 4,000_4,000 4,700 3 676 Total paid-in capital 4,700 4,700 39,207 43,907 4,700 33,676 38,376 $73,917 $66,146 Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 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: $70,400 $64,000 40,000 24,000 42,075 28,325 10,700 6,900 17,600 6,400 840 5,560 2,224 3,336 700 2,636 31,040 $39,207 $33,676 11,200 6,600 17,800 10,525 840 9,685 3,874 5,811 280 5,531 33,676 Selling expenses 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 Required: Compute the following financial data for this year: 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 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days days
