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Please show workings! I appreciate it and will give a thumbs up, thank you! Comparative financial statements for Weller Corporation, a merchandising company, for the
Please show workings! I appreciate it and will give a thumbs up, thank you!
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 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the 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 $ 1,080 9,100 12,500 730 $ 1,380 8,100 11,000 530 Total current assets 23,410 21,010 Property and equipment: Land Buildings and equipment, net 10,200 46,896 10,200 38,615 Total property and equipment 57,096 $80,506 48,815 $ 69,825 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $18,600 1,050 240 $ 18,000 780 240 19,890 19,020 Total current liabilities Long-term liabilities: Bonds payable 9,000 9,000 Total liabilities 28,890 28,020 Stockholders' equity: Common stock Additional paid-in capital 500 4,000 500 4,000 Total paid-in capital Retained earnings 4,500 47,116 4,500 37,305 Total stockholders' equity 51,616 41,805 Total liabilities and stockholders' equity $80,506 $69,825 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $73,960 $ 66,000 Cost of goods sold 38,775 37,000 Gross margin 35,185 29,000 Selling and administrative expenses: Selling expenses Administrative expenses 11,100 6,500 10,600 6,600 Total selling and administrative expenses 17,600 17,200 Net operating income Interest expense 17,585 11,800 900 900 Net income before taxes Income taxes 16,685 6,674 10,900 4,360 Net income Dividends to common stockholders 10,0116 200 ,540 375 Net income added to retained earnings Beginning retained earnings 9,8116 ,165 37,305 31,140 $47,116 $37,305 Ending retained earnings 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.) Accounts receivable turnover 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average collection period days 3. Inventory turnover. (Round your answer to 2 decimal places.) Inventory turnover 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average sale period days 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) Operating cycle days 6. Total asset turnover. (Round your answer to 2 decimal places.) Total asset turnoverStep by Step Solution
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