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Weller Corporation
Comparative Balance Sheet
(dollars in thousands)
This Year Last Year
Assets
Current assets:
Cash $ 1,280 $ 1,560
Accounts receivable, net 12,300 9,100
Inventory 9,700 8,200
Prepaid expenses 1,800 2,100
Total currentassets 25,080 20,960
Property andequipment:
Land 6,000 6,000
Buildings and equipment, net 19,200 19,000
Total property andequipment 25,200 25,000
Total assets $ 50,280 $ 45,960
Liabilitiesand Stockholders' Equity
Currentliabilities:
Accounts payable $ 9,500 $ 8,300
Accrued liabilities 600 700
Notes payable, short term 300 300
Total currentliabilities 10,400 9,300
Long-termliabilities:
Bonds payable 5,000 5,000
Totalliabilities 15,400 14,300
Stockholders'equity:
Common stock 800 800
Additional paid-in capital 4,200 4,200
Total paid-incapital 5,000 5,000
Retained earnings 29,880 26,660
Total stockholders'equity 34,880 31,660
Total liabilitiesand stockholders' equity $ 50,280 $ 45,960
Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
This Year Last Year
Sales $ 79,000 $ 74,000
Cost of goodssold 52,000 48,000
Gross margin 27,000 26,000
Selling andadministrative expenses:
Sellingexpenses 8,500 8,000
Administrative expenses 12,000 11,000
Total selling andadministrative expenses 20,500 19,000
Net operatingincome 6,500 7,000
Interestexpense 600 600
Net income beforetaxes 5,900 6,400
Income taxes 2,360 2,560
Net income 3,540 3,840
Dividends to commonstockholders 320 600
Net income added toretained earnings 3,220 3,240
Beginning retainedearnings 26,660 23,420
Ending retainedearnings $ 29,880 $ 26,660
(answers should befor this year)
3.

Return on total assets. (Round your percentage answer to1 decimal place (i.e., 0.1234 should be entered as12.3).)

4.

Return on equity. (Round your percentage answer to 2decimal places (i.e., 0.1234 should be entered as12.34).)

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Patrina Schowalter
Patrina SchowalterLv2
28 Sep 2019

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Weller Corporation
Comparative Balance Sheet
(dollars in thousands)
This Year Last Year
Assets
Current assets:
Cash $ 1,280 $ 1,560
Accounts receivable, net 12,300 9,100
Inventory 9,700 8,200
Prepaid expenses 1,800 2,100
Total current assets 25,080 20,960
Property and equipment:
Land 6,000 6,000
Buildings and equipment,net 19,200 19,000
Total property andequipment 25,200 25,000
Total assets $ 50,280 $ 45,960
Liabilities andStockholders' Equity
Current liabilities:
Accounts payable $ 9,500 $ 8,300
Accrued liabilities 600 700
Notes payable, short term 300 300
Total current liabilities 10,400 9,300
Long-term liabilities:
Bonds payable 5,000 5,000
Total liabilities 15,400 14,300
Stockholders' equity:
Common stock 800 800
Additional paid-in capital 4,200 4,200
Total paid-in capital 5,000 5,000
Retained earnings 29,880 26,660
Total stockholders' equity 34,880 31,660
Total liabilities andstockholders' equity $ 50,280 $ 45,960
Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
This Year Last Year
Sales $ 79,000 $ 74,000
Cost of goods sold 52,000 48,000
Gross margin 27,000 26,000
Selling and administrativeexpenses:
Selling expenses 8,500 8,000
Administrative expenses 12,000 11,000
Total selling and administrativeexpenses 20,500 19,000
Net operating income 6,500 7,000
Interest expense 600 600
Net income before taxes 5,900 6,400
Income taxes 2,360 2,560
Net income 3,540 3,840
Dividends to commonstockholders 320 600
Net income added to retainedearnings 3,220 3,240
Beginning retained earnings 26,660 23,420
Ending retained earnings $ 29,880 $ 26,660

Required:

Compute the following financial data and ratios for thisyear:

1. Working capital. (Enter answer inthousands.)

2. Current ratio. (Round your answer to 2 decimalplaces.)

3. Acid-test ratio. (Round your answer to 2 decimalplaces.)

Weller Corporation
Comparative Balance Sheet
(dollars in thousands)
This Year Last Year
Assets
Current assets:
Cash $ 1,280 $ 1,560
Accounts receivable, net 12,300 9,100
Inventory 9,700 8,200
Prepaid expenses 1,800 2,100
Total current assets 25,080 20,960
Property and equipment:
Land 6,000 6,000
Buildings and equipment,net 19,200 19,000
Total property andequipment 25,200 25,000
Total assets $ 50,280 $ 45,960
Liabilities andStockholders' Equity
Current liabilities:
Accounts payable $ 9,500 $ 8,300
Accrued liabilities 600 700
Notes payable, short term 300 300
Total current liabilities 10,400 9,300
Long-term liabilities:
Bonds payable 5,000 5,000
Total liabilities 15,400 14,300
Stockholders' equity:
Common stock 800 800
Additional paid-in capital 4,200 4,200
Total paid-in capital 5,000 5,000
Retained earnings 29,880 26,660
Total stockholders' equity 34,880 31,660
Total liabilities andstockholders' equity $ 50,280 $ 45,960
Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
This Year Last Year
Sales $ 79,000 $ 74,000
Cost of goods sold 52,000 48,000
Gross margin 27,000 26,000
Selling and administrativeexpenses:
Selling expenses 8,500 8,000
Administrative expenses 12,000 11,000
Total selling and administrativeexpenses 20,500 19,000
Net operating income 6,500 7,000
Interest expense 600 600
Net income before taxes 5,900 6,400
Income taxes 2,360 2,560
Net income 3,540 3,840
Dividends to commonstockholders 320 600
Net income added to retainedearnings 3,220 3,240
Beginning retained earnings 26,660 23,420
Ending retained earnings $ 29,880 $ 26,660

Required:

Compute the following financial data for this year:

1. Accounts receivable turnover. (Assume that all sales are onaccount.) (Round your answer to 2 decimalplaces.)

2. Average collection period. (Use 365 days in a year.Round your intermediatecalculations and final answer to 2 decimal places.)

3. Inventory turnover. (Round your answer to 2 decimalplaces.)

4. Average sale period. (Use 365 days in a year.Round your intermediatecalculations and final answer to 2 decimal places.)

5. Operating cycle. (Round your intermediatecalculations and final answer to 2 decimal places.)

6. Total asset turnover. (Round your answer to 2 decimalplaces.)

EXERCISE 15-2 Financial Ratios for Assessing Liquidity (L015-2] Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock dur ing the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.40. The market value of the company's common stock at the end of the year was $18. 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................... Accounts receivable, net ......... Inventory ..................... Prepaid expenses .............. Total current assets ............... Property and equipment: Land ............ Buildings and equipment, net ........ Total property and equipment. Total assets ........ $ 1,280 12,300 9,700 1,800 25,080 $ 1,560 9,100 8,200 2,100 20,960 6,000 19,200 25,200 $50,280 6,000 19,000 25,000 $45,960 .... $ 9,500 600 300 10,400 $ 8,300 700 300 9,300 Liabilities and Stockholders' Equity Current liabilities: Accounts payable.. Accrued liabilities .......... Notes payable, short term ........ 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 .. Total liabilities and stockholders' equity .......... 5,000 15,400 5,000 14,300 800 4,200 800 4,200 5,000 29,880 34,880 $50,280 5,000 26,660 31,660 $45,960 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $79,000 52,000 $74,000 48,000 26,000 27,000 8,500 12.000 Sales ..... . 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 ................. Income taxes ........ Net Income .......... Dividends to common stockholders ......... Net income added to retained eamings ...... Beginning retained earnings .............. Ending retained earnings ................. 20,500 6,500 600 5,900 2,360 8,000 11,000 19,000 7,000 600 6,400 2,560 3,840 3,540 320 320 3,220 26,660 $29,880 3,240 23,420 $26,660 Required: Compute the following financial data and ratios for this year. 1. Working capital. 2. Current ratio. 3. Acid-test ratio.

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