interest rate on the bond payable was 12%, 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 $18. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,280 12,300 9,700 1,800 25,080 $ 1,560 9,100 8, 200 2,100 20,960 6,000 19, 200 25, 200 $50, 280 6,000 19,000 25,000 $ 45,960 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 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: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 9,500 600 $ 8,300 700 300 9,300 300 10,400 5,000 5,000 15,400 14,300 800 4,200 5,000 29,880 34,880 $50, 280 800 4,200 5,000 26,660 31,660 $ 45,960 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold $ 79,000 $ 74,000 Gross margin 52,000 48,000 Selling and administrative expenses: 27,000 26,000 Selling expenses Administrative expenses 8,500 8,000 Total selling and administrative expenses 12,000 11,000 20,500 19,000 Net operating income 6,500 7,000 Interest expense 600 600 Net income before taxes 5,900 6,400 Income taxes 2,360 2,560 Net income 3,540 Dividends to common stockholders 320 600 Net income added to retained earnings 3,220 3,240 Beginning retained earnings 26, 660 23, 420 Ending retained earnings $29, 880 $26,660 3,840 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.) Answer is complete but not entirely correct. 1. Accounts receivable turnover 7.38 2. 49.46 days 3. 8.14 X Average collection period Inventory turnover Average sale period Operating cycle 4. 41.37 X days 340.71 x days 5. 6. Total asset turnover 0.41 X