Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 $22. 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 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 \begin{tabular}{rr} $1,220 & $1,280 \\ 10,600 & 6,500 \\ 12,300 & 11,100 \\ 660 & 570 \\ \hline 24,780 & 19,450 \\ \hline \end{tabular} \begin{tabular}{rr} 10,300 & 10,300 \\ 51,465 & 43,050 \\ \hline 61,765 & 53,350 \\ \hline$86,545 & $72,800 \\ \hline \hline \end{tabular} \begin{tabular}{rr} $19,600 & $18,600 \\ 1,080 & 890 \\ 280 & 280 \\ \hline 20,960 & 19,770 \end{tabular} \begin{tabular}{rr} 8,500 & 8,500 \\ \hline 29,460 & 28,270 \\ \hline \end{tabular} \begin{tabular}{rr} 600 & 600 \\ 4,000 & 4,000 \\ \hline 4,600 & 4,600 \\ 52,485 & 39,930 \\ \hline 57,085 & 44,530 \\ \hline$86,545 & $72,800 \\ \hline \hline \end{tabular} Weller Corporation Comparative Income Statement and Reconciliation (dnllare in thnucande) 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.) 5. Total asset turnover. (Round your answer to 2 decimal places.) \begin{tabular}{|l|r|l|} \hline 1. Accounts receivable turnover & 9.50 & \\ \hline 2. Average collection period & 38.42 & days \\ \hline 3. Inventory turnover & 3.50 & \\ \hline 4. Average sale period & 104.29 & days \\ \hline 5. Operating cycle & 142.70 & days \\ \hline 6. Total asset turnover & & \\ \hline \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started