Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 311 appear below. The company did not issue any new common stock during the year. A total of 800,000 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 this year was $18. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Last Year Year Assets Current assets: $ $ Cash 1,280 1,560 Accounts receivable, net Inventory 12,300 9,100 9,700 8,200 Prepaid expenses Total current assets 1,800 2,100 25,080 20,960 Property and equipment: Land: 6,000 6,000 Buildings and equipment, net 19,200 19,000 Total assets Total property and equipment Liabilities and Stockholders' Equity Current liabilities: 25,200 25,000 $ 50,280 45,960 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 $ 9,500 8,380 600 700 300 300 10,400 9,300 5,000 5,000 15,400 14,300 800 800 4,200 4,200 5,000 5,000 29,880 26,660 34,880 31,660 Total liabilities and stockholders' $ $ equity 50,280 45,960 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold This Year Last Year $ $ 79,000 74,000 52,000 48,000 Gross margin 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 27,000 26,000 8,500 8,000 12,000 11,000 20,500 19,000 6,500 600 7,000 5,900 600 6,400 2,360 2,560 3,540 3,840 320 600 3,220 3,240 26,660 23,420 $ $ 29.880 26.660