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Q4

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 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 companys common stock at the end of this year was $26. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,180		$	1,320
Accounts receivable, net		10,900			7,500
Inventory		13,300			11,800
Prepaid expenses		630			630
Total current assets		26,010			21,250
Property and equipment:
Land		10,200			10,200
Buildings and equipment, net		50,546			39,132
Total property and equipment		60,746			49,332
Total assets	$	86,756		$	70,582
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,300		$	17,700
Accrued liabilities		1,050			770
Notes payable, short term		260			260
Total current liabilities		21,610			18,730
Long-term liabilities:
Bonds payable		8,800			8,800
Total liabilities		30,410			27,530
Stockholders' equity:
Common stock		500			500
Additional paid-in capital		4,000			4,000
Total paid-in capital		4,500			4,500
Retained earnings		51,846			38,552
Total stockholders' equity		56,346			43,052
Total liabilities and stockholders' equity	$	86,756		$	70,582

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	79,120		$	66,000
Cost of goods sold		37,650			36,000
Gross margin		41,470			30,000
Selling and administrative expenses:
Selling expenses		10,800			10,300
Administrative expenses		7,300			6,300
Total selling and administrative expenses		18,100			16,600
Net operating income		23,370			13,400
Interest expense		880			880
Net income before taxes		22,490			12,520
Income taxes		8,996			5,008
Net income		13,494			7,512
Dividends to common stockholders		200			500
Net income added to retained earnings		13,294			7,012
Beginning retained earnings		38,552			31,540
Ending retained earnings	$	51,846		$	38,552

Required:

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.)

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.)

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