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 companys common stock at the end of this year was $26. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,230		$	1,350
Accounts receivable, net		9,200			6,800
Inventory		12,700			10,600
Prepaid expenses		790			620
Total current assets		23,920			19,370
Property and equipment:
Land		9,900			9,900
Buildings and equipment, net		45,009			42,068
Total property and equipment		54,909			51,968
Total assets	$	78,829		$	71,338
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	18,500		$	18,800
Accrued liabilities		1,050			710
Notes payable, short term		290			290
Total current liabilities		19,840			19,800
Long-term liabilities:
Bonds payable		8,700			8,700
Total liabilities		28,540			28,500
Stockholders' equity:
Common stock		700			700
Additional paid-in capital		4,000			4,000
Total paid-in capital		4,700			4,700
Retained earnings		45,589			38,138
Total stockholders' equity		50,289			42,838
Total liabilities and stockholders' equity	$	78,829		$	71,338

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	70,400		$	66,000
Cost of goods sold		38,445			35,000
Gross margin		31,955			31,000
Selling and administrative expenses:
Selling expenses		11,100			10,100
Administrative expenses		7,100			6,200
Total selling and administrative expenses		18,200			16,300
Net operating income		13,755			14,700
Interest expense		870			870
Net income before taxes		12,885			13,830
Income taxes		5,154			5,532
Net income		7,731			8,298
Dividends to common stockholders		280			700
Net income added to retained earnings		7,451			7,598
Beginning retained earnings		38,138			30,540
Ending retained earnings	$	45,589		$	38,138

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.)