Check my workCheck My Work button is now enabled Item2 Item 2 1.25 points Item Skipped Comparative f
Check my workCheck My Work button is now enabled
Item2
Item 2 1.25 points Item Skipped
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 600,000 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 $24. All of the company’s sales are on account. Weller Corporation
Comparative Balance Sheet
(dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,220 $ 1,290 Accounts receivable, net 10,800 7,800 Inventory 13,000 11,700 Prepaid expenses 770 590 Total current assets 25,790 21,380 Property and equipment: Land 10,200 10,200 Buildings and equipment, net 49,454 38,824 Total property and equipment 59,654 49,024 Total assets $ 85,444 $ 70,404 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19,600 $ 18,300 Accrued liabilities 1,040 860 Notes payable, short term 120 120 Total current liabilities 20,760 19,280 Long-term liabilities: Bonds payable 8,100 8,100 Total liabilities 28,860 27,380 Stockholders' equity: Common stock 600 600 Additional paid-in capital 4,000 4,000 Total paid-in capital 4,600 4,600 Retained earnings 51,984 38,424 Total stockholders' equity 56,584 43,024 Total liabilities and stockholders' equity $ 85,444 $ 70,404 Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands) This Year Last Year Sales $ 83,700 $ 65,000 Cost of goods sold 41,990 34,000 Gross margin 41,710 31,000 Selling and administrative expenses: Selling expenses 11,300 10,500 Administrative expenses 6,600 6,300 Total selling and administrative expenses 17,900 16,800 Net operating income 23,810 14,200 Interest expense 810 810 Net income before taxes 23,000 13,390 Income taxes 9,200 5,356 Net income 13,800 8,034 Dividends to common stockholders 240 450 Net income added to retained earnings 13,560 7,584 Beginning retained earnings 38,424 30,840 Ending retained earnings $ 51,984 $ 38,424
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.)
days 1. Accounts receivable turnover 2. Average collection period Inventory turnover Average sale period 5. Operating cycle 6. Total asset turnover days days
PLACE YOUR ORDER TO GET STARTEDThe post Check my workCheck My Work button is now enabled Item2 Item 2 1.25 points Item Skipped Comparative f appeared first on Essay Gem.
For any questions, feedback, or comments, we have an ethical customer support team that is always waiting on the line for your inquiries.