2 pints eBook 201 Hint Print References Exercise 16-3 (Static) Financial Ratios for Asset Management [LO16-3] 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 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, 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 $18. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 $ 1,280 12,300 9,700 1,800 25,080 6,000 19,200 25,200 $ 50,280 $9,500 600 300 10,400 5,000 15,400 800 4,200 5,000 29,880 34,880 $ 1,560 9,100 8,200 2,100 20,960 6,000 19,000 25,000 $ 45,960 $ 8,300 700 300 9,300 5,000 14,300 800 4,200 5,000 26,660 31,660

Exercise 16-3 (Static) Financial Ratios for Asset Management [LO16-3] 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 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of cornmon 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 $18. All of the company's sales are on account. Required: Compate the following financial daya for this year: 1. Accounts receivable turnovet. (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 decima) places.) 3. Inventory tumovet, (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 asses tumover. (Round your answer to 2 decimal places.) Required: Compute the following financial data for this year: 1. Accounts recelvable 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 turnovec (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.)