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 $26. 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	$	1,230		$	1,260
Accounts receivable, net		11,000			7,700
Inventory		12,900			11,600
Prepaid expenses		760			550
Total current assets		25,890			21,110
Property and equipment:
Land		9,400			9,400
Buildings and equipment, net		46,247			36,256
Total property and equipment		55,647			45,656
Total assets	$	81,537		$	66,766
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,400		$	18,300
Accrued liabilities		960			770
Notes payable, short term		230			230
Total current liabilities		21,590			19,300
Long-term liabilities:
Bonds payable		8,900			8,900
Total liabilities		30,490			28,200
Stockholders' equity:
Common stock		700			700
Additional paid-in capital		4,000			4,000
Total paid-in capital		4,700			4,700
Retained earnings		46,347			33,866
Total stockholders' equity		51,047			38,566
Total liabilities and stockholders' equity	$	81,537		$	66,766

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	84,150		$	66,000
Cost of goods sold		44,100			41,000
Gross margin		40,050			25,000
Selling and administrative expenses:
Selling expenses		10,800			10,700
Administrative expenses		6,800			6,700
Total selling and administrative expenses		17,600			17,400
Net operating income		22,450			7,600
Interest expense		890			890
Net income before taxes		21,560			6,710
Income taxes		8,624			2,684
Net income		12,936			4,026
Dividends to common stockholders		455			700
Net income added to retained earnings		12,481			3,326
Beginning retained earnings		33,866			30,540
Ending retained earnings	$	46,347		$	33,866

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.)

A.	Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.)

B.	Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.)

C.	Total asset turnover. (Round your answer to 2 decimal places.)