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 $22. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation Sales Cost of goods sold Gross margin This Year Last Year $ 1,110 10,100 12,400 $ 1,270 6,600 11,500 780 570 24,390 19,940 10,400 10,400 45,184 41,762 55,584 52,162 $ 79,974 $ 72,102 $ 19,300 $ 18,200 970 750 270 270 20,540 19,220 9,800 30,340 9,800 29,020 600 600 4,000 4,000 4,600 4,600 45,034 38,482 49,634 43,082 $ 79,974 $ 72,102 Comparative Income Statement and Reconciliation (dollars in thousands) Selling and administrative expenses: Selling expenses 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 This Year Last Year $ 74,315 $ 65,000 44,215 34,000 30,100 31,000 10,800 11,000 7,000 6,200 17,800 17,200 12,300 13,800 980 980 12,820 5,128 11,320 4,528 6,792 240 6,552 38,482 $ 45,034 7,692 450 7,242 31,240 $ 38,482