Question

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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company’s common stock at the end of the year was $20. 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	$	1,260		$	1,300
Accounts receivable, net		10,300			6,500
Inventory		12,800			10,700
Prepaid expenses		790			520
Total current assets		25,150			19,020
Property and equipment:
Land		10,600			10,600
Buildings and equipment, net		43,274			39,015
Total property and equipment		53,874			49,615
Total assets	$	79,024		$	68,635
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,200		$	18,400
Accrued liabilities		1,060			840
Notes payable, short term		250			250
Total current liabilities		21,510			19,490
Long-term liabilities:
Bonds payable		8,500			8,500
Total liabilities		30,010			27,990
Stockholders' equity:
Common stock		700			700
Additional paid-in capital		4,000			4,000
Total paid-in capital		4,700			4,700
Retained earnings		44,314			35,945
Total stockholders' equity		49,014			40,645
Total liabilities and stockholders' equity	$	79,024		$	68,635

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	76,440		$	66,000
Cost of goods sold		43,475			40,000
Gross margin		32,965			26,000
Selling and administrative expenses:
Selling expenses		10,900			10,100
Administrative expenses		6,800			6,500
Total selling and administrative expenses		17,700			16,600
Net operating income		15,265			9,400
Interest expense		850			850
Net income before taxes		14,415			8,550
Income taxes		5,766			3,420
Net income		8,649			5,130
Dividends to common stockholders		280			525
Net income added to retained earnings		8,369			4,605
Beginning retained earnings		35,945			31,340
Ending retained earnings	$	44,314		$	35,945

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.)