EXERCISE 16-3 Financial Ratios for Asset Management LO16-3 Refer to the data in Exercise 162 for Weller Corporation. Required: Compute the following financial data for this year: 1. Accounts receivable turnover. (Assume that all sales are on account.) 2. Average collection period. 3. Inventory turnover. 4. Average sale period. 5. Operating cycle. 6. Total asset turnover. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: \begin{tabular}{lrrr} Cash & $1.280 & $1.560 \\ Accounts receivable, net & 12,300 & 9.100 \\ Inventory & 9.700 & 8.200 \\ Prepaid expenses & 1,800 & 2.100 \\ \cline { 2 - 4 } Total current assets & 25.080 & 20.960 \\ \cline { 2 - 4 } & & \end{tabular} Property and equipment: Land \begin{tabular}{rrr} 6.000 & 6.000 \\ 19,200 & & 19.000 \\ \hline 25,200 & $50,28025,000 & $45,960 \\ \hline \end{tabular} Liabilities and Stockholders' Equity Current liabilities: \begin{tabular}{lrrr} Accounts payable & $9,500 & $8,300 \\ Accrued liabilities & 600 & 700 \\ Notes payable, short term & 300 & 300 \\ \cline { 2 - 3 } Total current liabilities & 10,400 & 9,300 \end{tabular} Long-term liabilities: \begin{tabular}{lrrr} Bonds payable & 5,000 & 5,000 \\ \cline { 2 - 3 } Total liabilities & 15,400 & 14,300 \\ \cline { 2 - 3 } Stockholders' equity: & 800 & 800 \\ Common stock & 4,200 & 4,200 \\ Additional paid-in capital & 5,000 & 5,000 \\ Total paid-in capital & 29,880 & 26,660 \\ Retained earnings & 31,66034,880 & & \\ Total stockholders' equity & $50,280 & & $45,960 \\ \hline Total liabilities and stockholders' equity & & \end{tabular} Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Gross margin Selling and administrative expenses: Selling expenses