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 500,000 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 $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 1,240 $ 1,360 8,100 11,500 620 Cash Accounts receivable, net Inventory Prepaid expenses 9,400 13,200 760 Total current assets 24,600 21,580 Property and equipment: Land 9,700 52,015 9,700 40,868 Buildings and equipment, net Total property and equipment 61,715 50,568 Total assets $ 86,315 $ 72,148 Liabilities and Stockholders' Equity Current liabilities: $20,200 $ 17,800 1,000 Accounts payable Accrued liabilities 880 Notes payable, short term 170 170 Total current liabilities 21,370 18,850 Long-term liabilities: Bonds payable 9,700 9,700 Total liabilities 31,070 28,550 Stockholders' equity: Common stock 500 500 Additional paid-in capital 4,000 4,000 Total paid-in capital Retained earnings 4,500 50,745 4,500 39,098 Total stockholders' equity 55,245 43,598 Total liabilities and stockholders' equity $ 86,315 $ 72,148 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $ 77,000 $66,000 38,285 35,000 Sales Cost of goods sold Gross margin 38,715 31,000 Selling and administrative expenses: Selling expenses Administrative expenses 10,800 7,200 10,400 6,700 Total selling and administrative expenses 18,000 17,100 Net operating income Interest expense 20,715 13,900 970 970 19,745 7,898 Net income before taxes 12,930 5,172 Income taxes 11,847 200 Net income 7,758 Dividends to common stockholders 200 Net income added to retained earnings Beginning retained earnings 11,647 39,098 7,558 31,540 Ending retained earnings $ 50,745 $39,098 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average sale period days 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) Operating cycle days 6. Total asset turnover. (Round your answer to 2 decimal places.) Total asset turnover 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 turnover 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average collection period days 3. Inventory turnover. (Round your answer to 2 decimal places.) Inventory turnover 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 500,000 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 $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 1,240 $ 1,360 8,100 11,500 620 Cash Accounts receivable, net Inventory Prepaid expenses 9,400 13,200 760 Total current assets 24,600 21,580 Property and equipment: Land 9,700 52,015 9,700 40,868 Buildings and equipment, net Total property and equipment 61,715 50,568 Total assets $ 86,315 $ 72,148 Liabilities and Stockholders' Equity Current liabilities: $20,200 $ 17,800 1,000 Accounts payable Accrued liabilities 880 Notes payable, short term 170 170 Total current liabilities 21,370 18,850 Long-term liabilities: Bonds payable 9,700 9,700 Total liabilities 31,070 28,550 Stockholders' equity: Common stock 500 500 Additional paid-in capital 4,000 4,000 Total paid-in capital Retained earnings 4,500 50,745 4,500 39,098 Total stockholders' equity 55,245 43,598 Total liabilities and stockholders' equity $ 86,315 $ 72,148 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $ 77,000 $66,000 38,285 35,000 Sales Cost of goods sold Gross margin 38,715 31,000 Selling and administrative expenses: Selling expenses Administrative expenses 10,800 7,200 10,400 6,700 Total selling and administrative expenses 18,000 17,100 Net operating income Interest expense 20,715 13,900 970 970 19,745 7,898 Net income before taxes 12,930 5,172 Income taxes 11,847 200 Net income 7,758 Dividends to common stockholders 200 Net income added to retained earnings Beginning retained earnings 11,647 39,098 7,558 31,540 Ending retained earnings $ 50,745 $39,098 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average sale period days 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) Operating cycle days 6. Total asset turnover. (Round your answer to 2 decimal places.) Total asset turnover 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 turnover 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) Average collection period days 3. Inventory turnover. (Round your answer to 2 decimal places.) Inventory turnover

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