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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 | $ | 50,280 | | $ | 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 | |
Long-term liabilities: | | | | | | |
Bonds payable | | 5,000 | | | 5,000 | |
Total liabilities | | 15,400 | | | 14,300 | |
Stockholders' equity: | | | | | | |
Common stock | | 800 | | | 800 | |
Additional paid-in capital | | 4,200 | | | 4,200 | |
Total paid-in capital | | 5,000 | | | 5,000 | |
Retained earnings | | 29,880 | | | 26,660 | |
Total stockholders' equity | | 34,880 | | | 31,660 | |
Total liabilities and stockholders' equity | $ | 50,280 | | $ | 45,960 | |
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Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) |
| This Year | Last Year |
Sales | $ | 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 | $ | 29,880 | | $ | 26,660 | |
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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.)
Answer & Explanation
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