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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the year was $29. 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 $ 1,080 $ 1,380 10,600 6,500 12,400 12.300 610 530 24,690 20,710 Property and equipment: Land Buildings and equipment, net Total property and equipment 10,100 42,011 10,100 38,537 52.111 48,637 Total assets $76.801 $69,347 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $ 19,300 $18,000 970 700 130 130 20,400 18,830 Total current liabilities Long-term liabilities Bonds payable Total liabilities 8,300 8,300 28.700 27.130 Stockholders' equity Common stock Additional paid-in capital Total paid-in capital Retained earnings 500 4,000 500 4,000 4,500 43,601 4.500 37.717 Total stockholders' equity 48.101 42.217 Total liabilities and stockholders' equity $76.801 $ 69,347 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year East Year Sales $73,530 $64,000 Cost of goods sold 44,460 34,000 Gross margin 29,070 30,000 Selling and administrative expenses: Selling expenses Administrative expenses 10,900 7,200 10,400 6,600 Total selling and administrative expenses 18,100 17,000 Net operating income Interest expense 10.970 830 13,000 830 Net income before taxes Income taxes 10.140 4,056 12,170 4.868 Net income Dividends to common stockholders 6.084 200 7,302 625 Net income added to retained earnings Beginning retained earnings 5.884 37.717 6.677 31.040 Ending retained earnings $ 43,601 $ 37,717 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.) Accounts receivable turnover 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average collection period days 3. Inventory turnover (Round your answer to 2 decimal places.) D Inventory turnover 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average sale period days 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) Operating cycle days 6. Total asset turnover. (Round your answer to 2 decimal places.) W Total asset turnover
