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 700,000 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 $25. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,150 9,700 12,000 780 23,630 $ 1,390 6,800 11,900 670 20,760 9,500 52,945 62,445 $86,075 9,500 42,315 51,815 $72,575 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 lial 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 $20,300 1,030 120 21,450 $18,900 830 120 19,850 9,500 30,950 9,500 29,350 700 4,000 4,700 50,425 55, 125 $86,075 700 4,000 4,700 38,525 43,225 $72,575 Last Year $66,000 35,000 31,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $75,900 Cost of goods sold 35,850 Gross margin 40,050 Selling and administrative expenses: Selling expenses 11,400 Administrative expenses 7,400 Total selling and administrative expenses 18,800 Net operating income 21,250 Interest expense 950 Net income before taxes 20,300 Income taxes 8,120 Net income 12,180 Dividends to common stockholders Net income added to retained earnings 11,900 Beginning retained earnings 38,525 Ending retained earnings $50,425 10,200 6,000 16,200 14,800 950 13,850 5,540 8,310 525 7,785 30,740 $38,525 280 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.) days 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days
