CH 15 _ HW 0 Saved Help Save 0 Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to quest Comparative nancial 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 203 year and $0.40 this year. The market value ofthe company's common stock at the end ofthis year was $18. All ofthe company's sales points are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets : Cash $ 1,280 $ 1,560 Accounts receivable, net 12,300 9,100 Inventory 9,700 8,200 Prepaid expenses 1, 800 2,100 Total current assets 25,080 20,960 Property and equipment : Land 6,000 6,000 Buildings and equipment, net 19,200 19,000 Total property and equipment 25,200 25,000 Total assets 5 50,280 5 45,960 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 9,500 $ 8,300 Accrued liabilities 600 700 Notes payable, short term 300 300 Total current liabilities 10,400 9,300 Longterm liabilities: Bonds payable 5,000 5,000 Total liabilities 15,400 14,300 Stockholders' equity: Common stock 800 800 Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to questlon Net: income Before taxes 5,900 6,400 Income taxes 2,360 2,560 Net: income 3,540 3,340 Dividends to common stockholders 320 600 Net income added to retained earnings 3,220 3,240 208 Beginning retained earnings 26,660 23,420 points Ending retained earnings 5 29,830 $ 26,660 Required: Compute the following nancial data for this year: 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.) 9 Answer is complete but not entirely correct. 1.Aocounts receivable turnover 7.38 a 2. Average collection period 49.49 9 days 3. Inventory turnover 5.81 a 4. Average sale period 62.82 9 days 5. Operating cycle 161.69 0 days 6. Total asset turnover 1.64 o CH 15 _ HW 0 Saved Help Save 5 Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to quest Total current liabilities 10,400 9,300 Long-term liabilities: Bonds payable 5, 000 5,000 Total liabilities 15,400 14,300 Stockholders' equity: Common stock 800 800 2.08 Additional paid-in capital 4,200 4,200 points Total paid-in capital 5, 000 5,000 Retained earnings 29, 380 26,660 Total stockholders' equity 34, 880 31,660 Total liabilities and stockholders' equity 5 50,280 $ 45,960 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales 5 79,000 $ 74,000 Cost of goods sold 52,000 48,000 Gross margin 27,000 26,000 Selling and administrative expenses: Selling expenses 8,500 8,000 Administrative expenses 12,000 11, 000 Total selling and administrative expenses 20 , 500 19 , 000 Net operating income 6 , 500 7 , 000 Interest expense 600 600 Net income before taxes 5 , 900 6 , 400 Income taxes 2,360 2,560 Net income 3,540 3,840 Dividends to common stockholders 320 600 Net income added to retained earnings 3 , 220 3 , 240 Beginning retained earnings 26,660 23,420 Ending retained earnings 5 29,880 $ 26,660 Required: Compute the followincl nancial data for this vear