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 the year was $23. 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 $ 1,200 $ 1,330 Accounts receivable, net 9,700 8,000 Inventory 12,900 11,500 Prepaid expenses 740 510 Total current assets 24,540 21,340 Property and equipment: Land 10,000 10,000 Buildings and equipment, net 46,641 35,406 Total property and equipment 56,641 45,406 Total assets $ 81,181 $ 66,746 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 18,500 $ 17,900 Accrued liabilities 930 700 Notes payable, short term 140 140 Total current liabilities 19,570 18,740 Long-term liabilities: Bonds payable 9,400 9,400 Total liabilities 28,970 28,140 Stockholders' equity: Common stock 600 600 Additional paid-in capital 4,000 4,000 Total paid-in capital 4,600 4,600 Retained earnings 47,611 34,006 Total stockholders' equity 52,211 38,606 Total liabilities and stockholders' equity $ 81,181 $ 66,746 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 80,535 $ 65,000 Cost of goods sold 37,820 40,000 Gross margin 42,715 25,000 Selling and administrative expenses: Selling expenses 11,400 10,900 Administrative expenses 7,300 6,800 Total selling and administrative expenses 18,700 17,700 Net operating income 24,015 7,300 Interest expense 940 940 Net income before taxes 23,075 6,360 Income taxes 9,230 2,544 Net income 13,845 3,816 Dividends to common stockholders 240 450 Net income added to retained earnings 13,605 3,366 Beginning retained earnings 34,006 30,640 Ending retained earnings $ 47,611 $ 34,006 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

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 the year was $23. 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 $ 1,200 $ 1,330 Accounts receivable, net 9,700 8,000 Inventory 12,900 11,500 Prepaid expenses 740 510 Total current assets 24,540 21,340 Property and equipment: Land 10,000 10,000 Buildings and equipment, net 46,641 35,406 Total property and equipment 56,641 45,406 Total assets $ 81,181 $ 66,746 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 18,500 $ 17,900 Accrued liabilities 930 700 Notes payable, short term 140 140 Total current liabilities 19,570 18,740 Long-term liabilities: Bonds payable 9,400 9,400 Total liabilities 28,970 28,140 Stockholders' equity: Common stock 600 600 Additional paid-in capital 4,000 4,000 Total paid-in capital 4,600 4,600 Retained earnings 47,611 34,006 Total stockholders' equity 52,211 38,606 Total liabilities and stockholders' equity $ 81,181 $ 66,746 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 80,535 $ 65,000 Cost of goods sold 37,820 40,000 Gross margin 42,715 25,000 Selling and administrative expenses: Selling expenses 11,400 10,900 Administrative expenses 7,300 6,800 Total selling and administrative expenses 18,700 17,700 Net operating income 24,015 7,300 Interest expense 940 940 Net income before taxes 23,075 6,360 Income taxes 9,230 2,544 Net income 13,845 3,816 Dividends to common stockholders 240 450 Net income added to retained earnings 13,605 3,366 Beginning retained earnings 34,006 30,640 Ending retained earnings $ 47,611 $ 34,006 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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 21E

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Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$	1,200	$	1,330
Accounts receivable, net		9,700		8,000
Inventory		12,900		11,500
Prepaid expenses		740		510
Total current assets		24,540		21,340
Property and equipment:
Land		10,000		10,000
Buildings and equipment, net		46,641		35,406
Total property and equipment		56,641		45,406
Total assets	$	81,181	$	66,746
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	18,500	$	17,900
Accrued liabilities		930		700
Notes payable, short term		140		140
Total current liabilities		19,570		18,740
Long-term liabilities:
Bonds payable		9,400		9,400
Total liabilities		28,970		28,140
Stockholders' equity:
Common stock		600		600
Additional paid-in capital		4,000		4,000
Total paid-in capital		4,600		4,600
Retained earnings		47,611		34,006
Total stockholders' equity		52,211		38,606
Total liabilities and stockholders' equity	$	81,181	$	66,746

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$	80,535	$	65,000
Cost of goods sold		37,820		40,000
Gross margin		42,715		25,000
Selling and administrative expenses:
Selling expenses		11,400		10,900
Administrative expenses		7,300		6,800
Total selling and administrative expenses		18,700		17,700
Net operating income		24,015		7,300
Interest expense		940		940
Net income before taxes		23,075		6,360
Income taxes		9,230		2,544
Net income		13,845		3,816
Dividends to common stockholders		240		450
Net income added to retained earnings		13,605		3,366
Beginning retained earnings		34,006		30,640
Ending retained earnings	$	47,611	$	34,006

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.)

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