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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.) 1. Accounts recelvable turnover 2. Average collection period 3. Inventory turnover days 4. Average sale period 5. Operating cycle 6. Total asset tumover days days

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.) 1. Accounts recelvable turnover 2. Average collection period 3. Inventory turnover days 4. Average sale period 5. Operating cycle 6. Total asset tumover days days

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter12: Capital Structure
Section: Chapter Questions
Problem 3PROB
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(dollars in thousands) This Year $ 82, 280 46,065 36,215 Sales Last Year $ 64,000 33,000 31,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes 11,000 6,600 17,600 18,615 930 17,685 7,074 10,611 240 10,900 6,900 17,800 13,200 930 12,270 4,908 7,362 300 7,062 31,340 $ 38,402 Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 10,371 38,402 $ 48,773 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.) 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days days
Transcribed Image Text:(dollars in thousands) This Year $ 82, 280 46,065 36,215 Sales Last Year $ 64,000 33,000 31,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes 11,000 6,600 17,600 18,615 930 17,685 7,074 10,611 240 10,900 6,900 17,800 13,200 930 12,270 4,908 7,362 300 7,062 31,340 $ 38,402 Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 10,371 38,402 $ 48,773 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.) 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days days
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 áppear 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 this year was $21. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousande) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total eurrent assets $1,140 10,800 13,600 710 26,250 $1,400 7,900 11,300 530 21,130 Property and equipnenti Land Buildings and equipnent, net Total property and equipnent 10,000 40,083 50,083 10,000 41,002 51,082 $ 72,212 Total assets $4,333 Liabilities and Stockhelders Equity Current liabilities Accounts payable Accrued liabilities Notes payable, short tern Total current liabilities Long-term liabilities1 Bonds payable Total liabilities stockholders' equity: Conmon atoek Additional paid-in capital $20,400 980 $ 18,900 730 20 21,660 280 19,910 9,300 00,960 9,300 29,210 600 600 4,000 4,000 Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Assets Current assets: Last Year Cash Accounts receivable, net Inventory Prepaid expenses Total current assets $ 1,140 10,800 13,600 710 $ 1,400 7,900 11,300 530 21,130 26,250 Property and equipment: Land Buildings and equipment, net Total property and equipment 10,000 48,083 58,083 $ 84,333 10,000 41,082 51,082 $ 72,212 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities $ 20,400 $ 18,900 730 280 19,910 980 Notes payable, short tern Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 280 21,660 9,300 30,960 9,300 29,210 600 4,000 4,600 48,773 53,373 $ 84,333 600 4,000 4,600 38,402 43,002 $ 72,212 Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year $ 82,280 Last Year Sales $ 64,000 33,000 Cost of goods sold 46,065
Transcribed Image Text: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 áppear 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 this year was $21. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousande) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total eurrent assets $1,140 10,800 13,600 710 26,250 $1,400 7,900 11,300 530 21,130 Property and equipnenti Land Buildings and equipnent, net Total property and equipnent 10,000 40,083 50,083 10,000 41,002 51,082 $ 72,212 Total assets $4,333 Liabilities and Stockhelders Equity Current liabilities Accounts payable Accrued liabilities Notes payable, short tern Total current liabilities Long-term liabilities1 Bonds payable Total liabilities stockholders' equity: Conmon atoek Additional paid-in capital $20,400 980 $ 18,900 730 20 21,660 280 19,910 9,300 00,960 9,300 29,210 600 600 4,000 4,000 Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Assets Current assets: Last Year Cash Accounts receivable, net Inventory Prepaid expenses Total current assets $ 1,140 10,800 13,600 710 $ 1,400 7,900 11,300 530 21,130 26,250 Property and equipment: Land Buildings and equipment, net Total property and equipment 10,000 48,083 58,083 $ 84,333 10,000 41,082 51,082 $ 72,212 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities $ 20,400 $ 18,900 730 280 19,910 980 Notes payable, short tern Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 280 21,660 9,300 30,960 9,300 29,210 600 4,000 4,600 48,773 53,373 $ 84,333 600 4,000 4,600 38,402 43,002 $ 72,212 Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year $ 82,280 Last Year Sales $ 64,000 33,000 Cost of goods sold 46,065
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