Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...
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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 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $28. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity This Year Last Year $ 1,230 9,500 12,500 $ 1,290 7,100 11,500 740 640 23,970 20,530 10,600 10,600 52,952 48,532 63,552 51,132 $ 87,522 $ 71,662 $ 19,600 940 $ 17,700 780 130 20,670 130 18,610 9,300 29,978 9,300 27,910 600 600 4,000 4,000 4,600 4,600 52,952 57,552 39,152 43,752 $ 87,522 $ 71,662 Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses This Year $ 75,530 33,600 41,930 Last Year $ 65,000 33,000 32,000 11,100. 10,500 6,500 17,600 6,800 17,300 OLAL SLUCKNU Loers equity Total liabilities and stockholders' equity Weller Corporation 37,552 $ 87,522 43,132 $ 71,662 Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin 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 Required: Compute the following financial data for this year: This Year $ 75,530 Last Year $ 65,000 33,600 33,000 41,930 32,000 11,100 10,500 6,500 6,800 17,600 17,300 24,330 14,700 930 930 23,400 9,360 14,040 240 13,800 39,152 13,770 5,508 8,262 450 7,812 31,340 $ 52,952 $ 39,152 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 decim 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 pla 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.) 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days days 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 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $28. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity This Year Last Year $ 1,230 9,500 12,500 $ 1,290 7,100 11,500 740 640 23,970 20,530 10,600 10,600 52,952 48,532 63,552 51,132 $ 87,522 $ 71,662 $ 19,600 940 $ 17,700 780 130 20,670 130 18,610 9,300 29,978 9,300 27,910 600 600 4,000 4,000 4,600 4,600 52,952 57,552 39,152 43,752 $ 87,522 $ 71,662 Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses This Year $ 75,530 33,600 41,930 Last Year $ 65,000 33,000 32,000 11,100. 10,500 6,500 17,600 6,800 17,300 OLAL SLUCKNU Loers equity Total liabilities and stockholders' equity Weller Corporation 37,552 $ 87,522 43,132 $ 71,662 Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin 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 Required: Compute the following financial data for this year: This Year $ 75,530 Last Year $ 65,000 33,600 33,000 41,930 32,000 11,100 10,500 6,500 6,800 17,600 17,300 24,330 14,700 930 930 23,400 9,360 14,040 240 13,800 39,152 13,770 5,508 8,262 450 7,812 31,340 $ 52,952 $ 39,152 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 decim 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 pla 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.) 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days days
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