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 600,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at t face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was this year. The market value of the company's common stock at the end of the year was $25. 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 S 1.220 S 1,250 7,000 12.100 2,400 620 10,700 630 Total current assets 24,650 21,270 Property and equipment: Land 11,000 11,000 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity 43,678 39,724 54,678 50,724 $79,328 $71,994 Current liabilities Accounts payable Accrued liabilities $18,700 $18,600 990 Notes payable, short term Total current liabilities Long-term liabilities 19.690 19,490 8,100 27,790 27,590 Bonds payable 8.100 Total liabilities Stockholders' equity: Common stock Additional paid-in capital 2,0002,000 4,000 4,000 Total paid-in capital Retained earnings 6,000 6,000 45,538 38,404 51,538 44,404 $79,328 $71,994 Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation dollars in thousands) Sales Cost of goods sold This Year Last Year S70,000 S66,000 39.000 35,000 Gross margin 31.000 31,000 Selling and administrative expenses Selling expenses Administrative expenses 10,600 11,000 6,500 17,900 17,500 13.100 13,500 7,300 Total selling and administrative expenses Net operating income Interest expense 810 Net income before taxes Income taxes 12.290 2,690 5,076 4.916 Net income Dividends to common stockholders 7.374 240 7,614 750 Net income added to retained earnings Beginning retained earnings 6,864 38,40431,540 Ending retained earnings $45,538 $38,404