4 HW Saved Help Save & 2 oints Sipped eBook Hint Print References Exercise 14-3 (Algo) Financial Ratios for Asset Management [LO14-3] 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 700,000 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 $23. All of the company's sales are on account. Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Weller Corporation Comparative Balance Sheet (dollars in thousands). This Year Last Year $1,200 9,000 12,300 710 $1,370 7,800 11,000 670 24,090 20,840 Property and equipments Land 11,000 11.000 Buildings and equipment, net 42,396 35,163 Total property and equipment 53,396 46,143 Total assets 77,486 67,003 Liabilities and Stockholders' Equity Current Liabilitieer Ch 2 poms year and year. He varvete Umpany a cui a year was cumpanya a are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Sipped Canh eBook Hint Print References This Year Last Year Current assets: 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 Liabilitiess Accounts payable Accrued liabilities Notes payable, short term Total current liabilities. Long-term liabilities: Bonds payable Total liabilities. Stockholders' equity Common stock $ 1,280 9,800 12,300 710 $1,370 7,800 11,000 670 24,090 20,840 11,000 11,000 42,396 35,163 53,396 46,163 577,406 $ 67,003 $ 19,900 1,060 260 20,220 $17,600 870 260 10,730 8,700 20,920 9,700 27-430 700 700 4,000 4,000 4,700 4.700 Retained earnings 43,066 34/979 Total stockholders' equity 40,566 39,573 Total liabilities and stockholders' equity $77,406 467,003 Meller Corporation Additional paid-in capital Total paid-in capital Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation 48,566 $ 77,486 39,573 $ 67,003 Comparative Income Statement and Reconciliation points Skype Sales Cost of goods sold Gross margin ebook Hint Pri References (dollars in thousands) Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net incone 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 $ 74,800 Last Year $ 65,000 40,775 41,000 34,025 24,000 10,900 10,200 6,800 6,500 17,700 16,325 870 15,455 6,182 16,700 7,300 34,873 $43,866 870 6,430 2,572 9,273 3,850 280 525 8,993 3,333 31,540 $34,873 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 decimal places.) 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 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.) Income taxes Net income Dividends to common stockholders Net incone added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 6,182 9,273 2,572 3,858 280 8,993 34,873 525 3,333 31,540 $ 43,866 $34,873 Book Hint rint rences 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 decimal places.) 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 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.) 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