Exercise 14-3 (Algo) Financial Ratios for Asset Management [LO14-3] Comparative financial statements for Weller Corporation, a...

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Exercise 14-3 (Algo) Financial Ratios for Asset Management [LO14-3] 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 600,000 shares of common stock were outstanding. The nterest 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 $28. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses. Total current assets. Property and equipment: Land Buildings and equipment, net Total property and equipment Weller Corporation Comparative Balance Sheet (dollars in thousands) 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: ALL 15 This Year Last Year $ 1,100 9,700 13,600 $ 1,360 7,900 11,000 680 690 25,080 20,950 9,700 9,700 48,814 58,514 38,604 48,384 $ 83,594 $ 69,334 $ 19,800 1,010 $17,800 810 290 290 21,100 18,900 9,100 9,100 30,200 28,000 < Prev 3 of 7 Next > A Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year $ 77,440 Last Year $ 66,000 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 Required: Compute the following financial data for this year: 38,130 38,000 39,310 28,000 10,800 10,800 7,100 6,300 17,900 17,100 21,410 10,900 910 910 20,500 9,990. 8,200 3,996 12,300 5,994 240 300 12,060 5,694 36,734 31,040 $ 48,794 $ 36,734 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 dec 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 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.) 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover days < Prev 3 of 7 Next 1. Accounts receivable turnover 2. Average collection period. 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days days Exercise 14-3 (Algo) Financial Ratios for Asset Management [LO14-3] 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 600,000 shares of common stock were outstanding. The nterest 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 $28. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses. Total current assets. Property and equipment: Land Buildings and equipment, net Total property and equipment Weller Corporation Comparative Balance Sheet (dollars in thousands) 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: ALL 15 This Year Last Year $ 1,100 9,700 13,600 $ 1,360 7,900 11,000 680 690 25,080 20,950 9,700 9,700 48,814 58,514 38,604 48,384 $ 83,594 $ 69,334 $ 19,800 1,010 $17,800 810 290 290 21,100 18,900 9,100 9,100 30,200 28,000 < Prev 3 of 7 Next > A Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year $ 77,440 Last Year $ 66,000 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 Required: Compute the following financial data for this year: 38,130 38,000 39,310 28,000 10,800 10,800 7,100 6,300 17,900 17,100 21,410 10,900 910 910 20,500 9,990. 8,200 3,996 12,300 5,994 240 300 12,060 5,694 36,734 31,040 $ 48,794 $ 36,734 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 dec 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 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.) 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover days < Prev 3 of 7 Next 1. Accounts receivable turnover 2. Average collection period. 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days days