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 $20. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,150 9,900 14,000 720 25,770 $ 1,350 6,600 12,300 620 20,870 : 10,300 47,437 57,737 $83,507 10,300 40,265 50,565 $71,435 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equip nt: 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 $19,400 1,090 220 20,710 $17,500 820 220 18,540 10,000 30,710 10,000 28,540 700 4,000 4,700 48,097 52,797 $83,507 700 4,000 4,700 38,195 42,895 $71,435 Last Year $64,000 33,000 31,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $77,550 Cost of goods sold 42,080 Gross margin 35,470 Selling and administrative expenses: Selling expenses 10,800 Administrative expenses 6,700 Total selling and administrative expenses 17,500 Net operating income 17,970 Interest expense 1,000 Net income before taxes 16,970 Income taxes 6,788 Net income 10,182 Dividends to common stockholders 280 Net income added to retained earnings 9,902 Beginning retained earnings 38,195 Ending retained earnings $48,097 10,900 6,800 17,700 13,300 1,000 12,300 4,920 7,380 525 6,855 31,340 $38, 195 Roamirod. 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
