Question
Comparative financial statements for Weller Corporation for the fiscal year ending December 31 appear below. The company did not issue any new common or preferred
Comparative financial statements for Weller Corporation for the fiscal year ending December 31 appear below. The company did not issue any new common or preferred stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.25. The market value of the company's common stock at the end of the year was $18. All of the company's sales are on account.
1. Compute the following financial data and ratios for this year.
a) Working Capital
b) Current Ratio
c) Acid-test Ratio
2. Compute the following data for this year.
a) Accounts Receivable turnover. (Assume that all sales are on account)
b) Average collection period
c) Inventory Turnover
d) Average sale period
e) Operating Cycle
f) Total Asset Turnover
3) Compute the following financial ratios for this year:
a) Times interest earned ratio
b) Debt-to-equity ratio
c) Equity Multiplier
***Please show work
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