her BULL Homework 12 Exercise 16-3 (Algo) Financial Ratios for Asset Management (L016-3) 3 Comparative financial statements for Welier 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 $30. All of the company's sales are on account OR pont This Year Last Year $ 1,230 10,000 12,000 740 20 $1,210 7.700 11,000 560 21270 53, 102 42340 02.2012 51,040 $ 86,752 573,210 weiler Corporation Comparative Balance Sheet dollars in thousands 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 assets Llabilities and Stockholders' Equity Current abilities Accounts payable Accrued abilities Notes payable, short term Total current liabilities Long-term Liabilities: fonds payable Total liabilities Stockholders' equity! Con stock Additional paid in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $.20,200 $ 18,400 910 850 120 120 21,230 19,370 9.300 9.500 30,700 28,870 600 600 1,000 4,000 4,600 4,600 51,422 39,740 56,022 44,340 $ 86,752 $ 73,210 Homework #12 3 3 08 COM 7.100 Weller Corporation Comparative Incone Statement and Reconciliation (dollars in thousands This Year Last Year Sales $ 76,118 $ 65,000 Cost of goods sold 36,89 32.000 Gross margin Selling and administrative expenses: Selling expenses 11,300 10,200 Administrative expenses 6,600 Total selling and administrative expenses 18.400 16,000 Net operating income 20.020 Interest expense 950 950 Net Income before taxes 19.870 Income taxes 6.100 et incone 11,922 9,150 Dividends to como stockholders 240 450 Net income added to retained earnings 12,682 Beginning retained earnings 39.74 31,040 Ending retained earnings $ 51,422 $ 39,740 26,20 15.25 Pufoane 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.) Average sole 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 receivatie turnover 2 Average collection period 2. Inventory tumover 4. Average sale period 5. Operatng cycle 6. Total asset fumover days days
