mgement (15] 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 the year was $26. 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 assets Liabilities and Stockholders' Equity Current ab Accounts payable re to search C $1,260 10,300 $1,370 13,500 8,400 12,100 690 550 25,750 22,420 10,700 10,700 45,827 34,808 54,527 45,500 500,277 $67.928 $20,400 $18,700 < Prev 39 hp Next > U 6199 Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital 21,570 19,730 9,200 9,200 30,770 28,930 600 600 4,000 4,000 Total paid-in capital 4,600 4,600 Retained earnings 44,907 34,398 Total stockholders' equity 49,507 38,998 Total liabilities and stockholders' equity $80,277 $67,928 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year. Sales $83,215 $66,000 Cost of goods sold 46,080 42,000 Gross margin 37,135 24,000 Selling and administrative expenses: Selling expenses 11,400 10,700 Administrative expenses 6,900 6,200 Total selling and administrative expenses 28,300 15,900 Net operating Income 18,835 7,100 4 Interest expense 920 920 Net income before taxes 17,915 6,180 Income taxes 7,166 2,472 tiet income 10,749 3,788 Dividends to common stockholders 240 450 Pray 3 of 9 Next > Sales $83,215 $66,000 Cost of goods sold 46,080 42,000 Gross margin 37,135 24,000 Selling and administrative expenses: Selling expenses 11,400 10,700 Administrative expenses 6,900 6,200 Total selling and administrative expenses 18,300 16,900 Net operating income 18,835 7,100 Interest expense 920 920 Net Income before taxes 17,915 6,180 Income taxes 7,166 2,472 Net income 10,749 3,708 Dividends to common stockholders. 240 450 Net income added to retained earnings 10,509 3,258 Beginning retained earnings 34,398 31,140 Ending retained earnings $44,907 $34,398 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.)