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 $23. All of the company's sales are on account. Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Accounts receivable, net Inventory Prepaid expenses 1,230 1,370 10,300 13,700 8,000 12,500 660 25,890 Total current assets Property and equipment: Land 9,500 45, 062 54,562 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: 36,566 $80,452 $68,516 $20,400 $18,200 Accounts payable Accrued liabilities Notes payable, short term 21,620 19,050 Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: 31,020 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders equity 600 4,000 4,600 35,466 40,066 $80,452 $68,516 4,600 44,832 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: $74,000 $65,000 39,000 36,000 26,00 10,700 38,000 Selling expenses 11,400 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 17,600 400 18,700e 16,360 6,544 460 2,984 476 4,026 440 $44,832 $35,466 9,366 35,466