W12 Hom 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 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 $30. 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 $ 1,250 $ 1,290 Accounts receivable, net 9.500 8,100 Inventory 12,300 11.900 Prepaid expenses 670 560 Total current assets 23,720 21.850 Property and equipment Land 9.500 9.500 Buildings and equipment, net 46,914 37 346 56.414 Total property and equipment Total assets 46.846 S80,134 68,696 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued lab tes Nobos payable, short term $20,200 960 $18.900 200 260 21.420 19.950 Total current liabilities Long-term liabilities: Bonds payable 8.900 8,900 Total liabilities 30,320 28,850 Stockholders' equity: Common stock Additional paid-in capital 700 4.000 4,000 Total paid in capital Retained earnings 4,700 45,114 4.700 35,148 Total stockholders' equity 49,814 Total liabilities and stockholders' equity S80.134 S60,095 W12 Homework Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $78,320 $60,000 Cost of goods sold 42,350 40,000 Gross margin 35,970 25,000 Selling and administrative expenses: Selling expenses Administrative expenses 11,400 6,600 10,900 6,200 Total selling and administrative expenses 18,000 17,100 Net operating income Interest expense 17,970 890 8.900 890 Net income before taxes Income taxes 17,000 6,052 - 8,010 3,204 Net income Dividends to common stockholders 10.248 4,806 280 700 Net income added to retained earnings Beginning retained earnings 9,968 35, 146 4,108 31,040 Ending retained earnings $45,114 $35,146 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 tumover 2. Average collection period. (Use 365 days in a year. Round your answer to 2 decimal places.) Average collection period VIZ Home Work Chapter 18 3. Inventory tumover. (Round your answer to 2 decimal places.) Inventory turnover 4. Average sale period. (Uso 365 days in a year. Round your intermediate calculations and fin answer to 2 decimal places.) Average sale period days 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal place Operating cycle days 6. Total asset turnover. (Round your answer to 2 decimal places.) Total asset turnover
