Question

helppppp please

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 this 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 $ 1,130 1,280 Accounts receivable, net Inventory 10,400 7,300 12,600 600 11,200 660 Prepaid expenses 24,730 20,440 Total current assets Property and equipment Land 11,000 11,000 39,444 50,444 52,365 63,365 Buildings and equipment, net Total property and equipment $88,095 $70,884 Total assets

Answer 1

Answer- 1)- Accounts receivable turnover = Sales on account /Average accounts receivable

=$82305/ ($7300+$10400)/2

=$82305/$8850

= 9.3 times

2)- Average collection period =40.56 days.

Explanation- Average collection period = 365 days/Accounts receivable turnover

= 365 days/9 times

= 40.56 days

3)-Inventory turnover = Cost of goods sold/Average inventory*

= $34510/( $11200+$12600)/2

= $34810/$11900

= 2.9 times

4)- Average sale period =121.67 days.

Explanation- Average sale period = 365 days/Inventory turnover

= 365 days/ 3 times

= 121.67 days

5)- Operating cycle =109.1 days.

Explanation- Operating cycle = Average sale period + Average collection period

= 41 days+ 122 days

=163.00 days

6)- Total assets turnover ratio = Turnover/Average assets

= $82305/($70884+$88095)/2

= $82305/$79489.5

= 1.04 times