Weller Corporation

Comparative Balance Sheet

$($dollars in thousands$)$

This Year Last Year

Assets

Current assets:

Cash $ $1,120$ $ $1,360$

Accounts receivable, net $10,9008,000$

Inventory $12,70011,800$

Prepaid expenses $730590$

Total current assets $25,45021,750$

Property and equipment:

Land $11,00011,000$

Buildings and equipment, net $52,21436,714$

Total property and equipment $63,21447,714$

Total assets $ $88,664$ $ $69,464$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $20,300$ $ $17,600$

Accrued liabilities $1,020840$

Notes payable, short term $100100$

Total current liabilities $21,42018,540$

Long$-$term liabilities:

Bonds payable $8,1008,100$

Total liabilities $29,52026,640$

Stockholders' equity:

Common stock $600600$

Additional paid$-$in capital $4,0004,000$

Total paid$-$in capital $4,6004,600$

Retained earnings $54,54438,224$

Total stockholders' equity $59,14442,824$

Total liabilities and stockholders' equity $ $88,664$ $ $69,464$

Weller Corporation

Comparative Income Statement and Reconciliation

$($dollars in thousands$)$

This Year Last Year

Sales $ $83,160$ $ $65,000$

Cost of goods sold $36,75034,000$

Gross margin $46,41031,000$

Selling and administrative expenses:

Selling expenses $11,20010,300$

Administrative expenses $6,8007,000$

Total selling and administrative expenses $18,00017,300$

Net operating income $28,41013,700$

Interest expense $810810$

Net income before taxes $27,60012,890$

Income taxes $11,0405,156$

Net income $16,5607,734$

Dividends to common stockholders $240450$

Net income added to retained earnings $16,3207,284$

Beginning retained earnings $38,22430,940$

Ending retained earnings $ $54,544$ $ $38,224$

Required:

Compute the following financial data for this year:

$1.$ Accounts receivable turnover. $($Assume all sales are on account.$)$

$2.$ Average collection period.

$3.$ Inventory turnover.

$4.$ Average sale period.

$5.$ Operating cycle.

$6.$ Total asset turnover.