3 Exercise 14-5 Financial Ratios for Assessing Profitability (L014-5) 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 920,000 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 $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of the year was $24. All of the company's sales ore on account Moller Corporation Comparative Balance Sheet dollars in thousands) Doch This Year Last Year Hint # 2,930 10.350 $ 2,772 15,600 10,300 1.920 30.592 Print Assets Current assets Cash Accounts receivable, et Inventory Drepaid expenses Total current sets Property and equipment Land Buildings and equipment, bet Total property and suspent Total as Liabilities and stockholders' Equity Current liabilities Accounts payable Red Liabilities Notes payable short curs Total current liabilities Long-tem liabilities: Bonds payable Total liabilities stocholders egity: Common stock Misional paid in capital 7,200 20.400 22.600 $58.192 2.340 24,300 7,200 20.200 27.400 351,700 510, 700 240 420 11.960 7.500 19,460 $ 8.900 1,300 420 10.620 2.500 10.120 120 4.800 920 4,100 420 11,960 420 10,620 7,500 19,460 27.500 18, 120 Notes payable, short tern Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity Common stock Additional paid-in capital Total pald-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 920 4,800 5,720 33,012 38,732 $58,192 920 4.800 5,720 27.860 23,580 $51,700 Weller Corporation Comparative Income Statement and Reconciliation (dollar in thousands) This Year Last Year Sales $91,000 $86,000 Cost of goods sold 50,000 54,000 Gross margin 3.000 Selling and administrative expenses 32.000 Selling expenses 9.700 9.200 ministrative expenses 13.200 12,200 Total selling and administrative expenses 22.900 21.400 Slet operating income Interest expenso 10,100 10.600 900 Not income before taxes 900 9.200 Income taxes 9,700 2.800 Net Income 5.520 Dividendo y common stockholders 5,820 368 Net Incont added to retained earnings 736 5,152 Beginninedatained earnings 5,084 22.060 22.276 Ending retained earnings $33,012 $27,860 nces Required: