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 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 $25. 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 $ 1,080 $ 1,320 Accounts receivable, net 9,100 7,400 Inventory 12,500 12,200 Prepaid expenses 640 500 Total current assets 23,320 21,420 Property and equipment: Land 9,800 9,800 Buildings and equipment, net 47,745 36,078 Total property and equipment 57,545 45,878 Total assets $80,865 $67,298 $20,100 $ 18,900 1,090 900 280 280 21,470 9,700 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 20,080 9,700 29,780 31,170 600 4.000 600 4,000 4,600 45,095 4,600 32,918 49,695 37,518 $67,298 $80,865 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $77,550 $ 65,000 Cost of goods sold 38,285 42,000 Gross margin 39,265 23,000 10,800 6,800 10,700 6,700 17,600 17,400 21,665 970 5,600 970 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 20,695 8,278 4,630 1,852 12,417 240 2,778 600 12,177 32,918 2,178 30,740 $45,095 $32,918 Required: Compute the following financial data for this year: 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 turnover
