Answer Happy

Exercise 14-3 (Algo) Financial Ratios for Asset Management (LO14-3] 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 $075 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $26. All of the company's sales are on account This year Last Year 51,360 8,000 ter Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment Land Buildings and equipment, net Total property and equipment Total assets Llabilities and Stockholders Equity 5.1.260 9,500 13,500 760 25.630 600 22.260 10,400 44,910 54219 5.10,339 10,400 39,256 50.166 $ 72,426 < Prev 4 of 5 Next >
18,400 44,319 54,719 $ 38, 339 10,400 39,766 58,166 $ 72,426 Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued Liabilities Notes payable, short term Total current liabilities Long-term 13 abilities: Bonds payable Total liabilities Stockholders' equity Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 20,180 1,030 280 21,410 5 18,700 820 280 19,800 8,400 29,810 8,400 28,200 Geo 4.000 4,600 45,929 58,529 $ 89,339 600 4.000 4,600 39,626 46,226 $ 72,426
Last Year 5.65,000 33,000 32,000 Heller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 77,430 Cost of goods sold 48,285 Gross margin 29,145 Selling and administrative expenses: Selling expenses 18,600 Administrative expenses 6,800 Total selling and administrative expenses 17,400 Net operating income 11,745 Interest expense 840 Net Income before taxes 10,905 Income taxes 4,362 Net Income 6,543 Dividends to common stockholders 240 Net Income added to retained earnings 6,303 Beginning retained earnings 39,626 Ending retained earnings $.45,929 10,500 6,180 16,600 15,400 840 14,560 5,824 3,736 650 8,286 31,340 $ 39,626 Required: Compute the following financial data for this year
the earnings 5.45,929 $ 39,626 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 tumover (Round your answer to 2 decimal places.) days 1 Accounts receivable turnover 2 Average collection period 3 Inventory turnover 4. Average sale period 5 Operating cycle 6 Total asset turnover days days