Question

Dividends to common stockholders Net income added to retained warnings Beginning retained earnings Ending retained earnings 280 17,561 36, 1 $53,711 350 5,41 38,140 $16.15 Required: Compute the following financial data for this year Last Year $65,000 37.000 28,000 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.) Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $84,630 Cost of goods sold 36,395 Gross margin 48.235 Selling and administrative expenses: Selling expenses 10.500 Administrative expenses 7,100 Total selling and administrative expenses 17,600 Net operating income 30,635 Interest expense 900 Net income before taxes 29,735 Income taxes 11,894 Net income 17,841 Dividends to common stockholders Net income added to retained earnings 17.561 36,158 Beginning retained earnings Ending retained carnings $53,711 10,500 7,000 17. See 10,500 900 9,600 3848 5,760 350 5.410 30.748 days 1. Accounts receivable turnover 2 Average collection period 3. Inventory turnover 4 Average sale ported Operating cycle Total se turnover 280 days days 536,150 Prey 2 ! Required: Compute the following financial data for this year Search 1 Accounts receivable turnover Assume that all sales are an account (Round vot Assets Current assets: $ 1,210 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 $24. All of the company's sales are on account Accounts receivable, net Inventary Prepaid expenses Total current assets Property and equipment: Weller Corporation Comparative Balance Sheet (dollars in thousands) 47,818 $69.560 This Year Last Year Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable chart term $18,800 $ 1.130 10.200 13,200 $ 1,210 8.000 11,90 19.710 620 25,158 21,750 Assets Current assetst Cash 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 liabilities: Accounts payable accrued tahtlitter Total liabilities Stockholders equity Additional paid in Capital Total paid-in capital 9,700 52.461 62,161 587,311 9.790 38,110 47.810 569,560 Totalekha Total liabilities and stockholde < Prey 20 5 H $18,500 270 N 1 < Prex 2 of 5 Next > .JPG

Answer 1

Correct Answer: .

Net sales	/	Average Accounts Receivable	=	Account Receivable turnover ratio
84630		9100	=	9.30

365.00	/	Account Receivable turnover ratio	=	Average collection period
365.00	/	9.30	=	39.25 Days

Cost of goods sold	/	Average Inventory	=	Inventory turnover ratio
$                 36,395.00	/	$                                                12,550.00	=	2.9

365	/	Account receivables turnover ratio	=	Average sales period
365	/	9.30	=	39.25

Inventory period	+	Account receivable period	=	Operating cycle
125.86 days	+	39.25 Days	=	165.11 Days

Note : Inventory period = 365/ Inventory turnover ratio

Account receivable Period = 365/Account receivable turnover ratio

Net Sales	/	Average total assets	=	Total Assets turnover
84630	/	78435.5	=	1.08

End of answer.

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