1 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 700,000 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 companys common stock at the end of this year was $30. All of the companys sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,240 $ 1,240 Accounts receivable, net 10,800 6,900 Inventory 13,400 11,800 Prepaid expenses 750 590 Total current assets 26,190 20,530 Property and equipment: Land 10,200 10,200 Buildings and equipment, net 43,292 38,085 Total property and equipment 53,492 48,285 Total assets $ 79,682 $ 68,815 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19,400 $ 18,900 Accrued liabilities 940 820 Notes payable, short term 110 110 Total current liabilities 20,450 19,830 Long-term liabilities: Bonds payable 9,500 9,500 Total liabilities 29,950 29,330 Stockholders' equity: Common stock 700 700 Additional paid-in capital 4,000 4,000 Total paid-in capital 4,700 4,700 Retained earnings 45,032 34,785 Total stockholders' equity 49,732 39,485 Total liabilities and stockholders' equity $ 79,682 $ 68,815 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 84,075 $ 65,000 Cost of goods sold 47,880 40,000 Gross margin 36,195 25,000 Selling and administrative expenses: Selling expenses 10,500 10,600 Administrative expenses 7,200 6,500 Total selling and administrative expenses 17,700 17,100 Net operating income 18,495 7,900 Interest expense 950 950 Net income before taxes 17,545 6,950 Income taxes 7,018 2,780 Net income 10,527 4,170 Dividends to common stockholders 280 525 Net income added to retained earnings 10,247 3,645 Beginning retained earnings 34,785 31,140 Ending retained earnings $ 45,032 $ 34,785