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 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.)
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) |
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This Year | Last Year | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 1,200 | $ | 1,330 | ||
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 |
||||||
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 | ||||
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 | ||
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.)
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