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Exercise 14-3 Financial Ratios for Asset Management (L014-3) Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below.

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Exercise 14-3 Financial Ratios for Asset Management (L014-3) 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 lost 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 soles are on account Weller Corporation Comparative Income statement and Reconciliation (dollars in thousands) This Year Last Year Sales $75,240 $65,000 Cost of goods sold 43,350 40,000 Gross margin 31,890 25,000 Selling and administrative expenses Selling expenses 11,000 10,900 Administrative expenses 6,500 6,200 Total selling and administrative expenses 17,500 17,100 Net operating income 14,390 7,900 Interest expense 950 950 Net income before taxes 13,440 6,950 Income taxes 5,376 2,780 Net income 8,064 4,170 Dividends to common stockholders 240 600 Net Income added to retained earninga 7,824 3,570 Beginning retained earnings 34,910 31,340 Ending retained earnings $42,734 $34,910 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.)

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