Homework Help is Here – Start Your Trial Now!
Business
Accounting
Wetter Corporation. Comparative Income Statement and Reconciliation (dollars in thousands) 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 earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover This Year $ 81,450 43,920 37,530 days 11,100 7,400 days days 18,500 19,030 860 18,170 7,268 10,902 240 10,662 38,804 $ 49,466 Last Year $ 65,000 34,000 31,000 10,200 6,500 16,700 14,300 860 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 intermédiate calculations and final answer to 2 decimal place 3. Inventory turnover. (Round your answer to 2 decimal places.) 13,440 5,376 8,064 300 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.) 7,764 31,040 $ 38,804

Wetter Corporation. Comparative Income Statement and Reconciliation (dollars in thousands) 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 earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover This Year $ 81,450 43,920 37,530 days 11,100 7,400 days days 18,500 19,030 860 18,170 7,268 10,902 240 10,662 38,804 $ 49,466 Last Year $ 65,000 34,000 31,000 10,200 6,500 16,700 14,300 860 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 intermédiate calculations and final answer to 2 decimal place 3. Inventory turnover. (Round your answer to 2 decimal places.) 13,440 5,376 8,064 300 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.) 7,764 31,040 $ 38,804

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question
Sales Cost of goods sold Wetter Corporation Comparative Income Statement and Reconciliation. (dollars in thousands). 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 earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period i 5. Operating cycle 6. Total asset turnover This Year: $ 81,450 43,920 37,530 days 11, 100 7,400 18,500 19,030 days days 860 18, 170 7,268 10,902 240 10,662 38,804 $ 49,466 Last Year $ 65,000 34,000 31,000 10, 200 6,500 16,700 14,300 860 13,440 5,376 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 intermédiate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) 8,064 300 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.) 7,764 31,040 $ 38,804
Transcribed Image Text:Sales Cost of goods sold Wetter Corporation Comparative Income Statement and Reconciliation. (dollars in thousands). 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 earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period i 5. Operating cycle 6. Total asset turnover This Year: $ 81,450 43,920 37,530 days 11, 100 7,400 18,500 19,030 days days 860 18, 170 7,268 10,902 240 10,662 38,804 $ 49,466 Last Year $ 65,000 34,000 31,000 10, 200 6,500 16,700 14,300 860 13,440 5,376 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 intermédiate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) 8,064 300 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.) 7,764 31,040 $ 38,804
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 $22. All of the company's sales are on account. 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 Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 This Year $ 1,230 9,900 12,600 650 24,380 10,700 48,686 59,386 $ 83,766 $ 20,000 920 180 21,100 8,600 29,700 600 4,000 4,600 49,466 54,066 $ 83,766 Last Year $ 1,320 8,200 11,800 530 21,850 10,700 38,044 48,744 $ 70,594 $ 17,600 810 180 18,590 8,600 27,190 600 4,000 4,600 38,804 43,404 $ 70,594
Transcribed Image Text: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 $22. All of the company's sales are on account. 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 Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 This Year $ 1,230 9,900 12,600 650 24,380 10,700 48,686 59,386 $ 83,766 $ 20,000 920 180 21,100 8,600 29,700 600 4,000 4,600 49,466 54,066 $ 83,766 Last Year $ 1,320 8,200 11,800 530 21,850 10,700 38,044 48,744 $ 70,594 $ 17,600 810 180 18,590 8,600 27,190 600 4,000 4,600 38,804 43,404 $ 70,594
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS