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 900.000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 12%. The income tax rate was 40% and the dividend per share of common stock was so.40 this year. The market value of the company's common stock at the end of the year was $23. 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 $ 240 $ 510 15,400 10,250 10,200 8,600 2,300 1,900 Total current assets 27,740 21,660 Property and equipment Land 7,000 7,000 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity 20,200 20,000 27,200 27,000 $54,940 $48,660 Current liabilities Accounts payable Accrued liabilities $10,500 $ 8,800 400 11,700 10,400 5,000 16,700 15.400 800 Notes payable, short term Total current liabilities Long-term liabilities Bonds payable 5,000 Total liabilities 900 Common stock Additional paid-in capital 900 4,700 4,700 Total paid-in capital Retained earnings 5,600 5,600 32,640 27,660 38,240 33,260 $54,940 $ 48,660 Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $89,000 $84,000 57,000 53,000 Cost of goods sold Gross margin Selling and administrative expenses: 32,000 31,000 Selling expenses 9,500 9,000 Administrative expenses Total selling and administrative expenses Net operating income 13,000 12,000 22,500 21.000 9,500 10,000 Interest expense 600 600 8,900 3,560 Net income before taxes 9,400 Income taxes Net income 5,340 360 5640 Dividends to common stockholders 675 4,965 $32,640 27,660 Net income added to retained earnings 4,980 Beginning retained earnings 27,660 22,69 Ending retained earnings