Exercise 16-3 (Algo) Financial Ratios for Asset Management (LO16-3] 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 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 $22. 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 Property and equipment: Land Buildings and equipment, net Total property and equipment Total asses Liabilities and Stockholders' Equity Current liabilities: $ 1,130 9,700 13, 200 720 24,750 $ 1,280 8,500 11,000 560 21,340 10,600 52,230 62,830 $87,580 10, 600 36,172 46,772 S68, 112 counts payable $19,000 1,010 210 20, 220 $19, 300 700 210 20,210 9,300 129520 9, 300 29,510 Aacrued liabilities Nates payable, short term Total current liabilities TU Long-term abilities: Art Bonds payable Total liabilities Stockholders equity: 11 Common stock Additional paidan capital Total paid-in capital Retained earnings Total stockholders equity Total 11abilities and stockholders equity 600 4,000 4,600 53, 460 158060 S87580 600 4,000 4,600 34,002 3,602 $58, 112 Weller Corporation Comparative Income Statement and Reconciliation dollars in thousands This Year Hast Year Sales $85,50 $69000 Cost of goods sold 33,990 39.000 Gross margin 501, 6160 35OOD Selling and administrative expenses Selling expenses 1,200 Ho 900 Administrative expenses 790 6900 Total selling and administrative expenses LAL 14180 Net operating income 360 200 Interest expense 930 1930 Net income betore axes Go 16270 Income taxes 2182 2 508 Net income 698 31762 Dividends to common stackholders 200 600 Net income added to recained earnings 453 31162 Beginning retained carnings s002 30.81 Ending retained earnings S53460 $34.002 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