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Exercise 14-3 (Algo) Financial Ratios for Asset Management [LC14-5] Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear

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Exercise 14-3 (Algo) Financial Ratios for Asset Management [LC14-5] 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 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 $25. All of the company's sales are on account. Retained earnings Total stockholders' equity Total liabilities and stockholders' equity \begin{tabular}{rr} 54,920 & 37,012 \\ \hline 59,420 & 41,512 \\ \hline$89,210 & $69,592 \\ \hline \hline \end{tabular} Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings \begin{tabular}{rr} This Year & Last Year \\ $83,600 & $64,000 \\ 34,440 & 36,000 \\ \hline 49,160 & 28,000 \\ \hline 11,100 & 10,900 \\ 7,000 & 6,100 \\ \hline 18,100 & 17,000 \\ \hline 31,060 & 11,000 \\ 880 & 880 \\ \hline 30,180 & 10,120 \\ 12,072 & 4,048 \\ \hline 18,108 & 6,072 \\ 200 & 500 \\ \hline 17,908 & 5,572 \\ 37,012 & 31,440 \\ \hline$54,920 & $37,012 \\ \hline \end{tabular} 1. Accounts recelvable 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 place 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.)

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