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Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new
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 500,000 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 $24. 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 This Year Last Year $ 1,170 10,500 12,800 650 25,120 $ 1,250 7,400 11,200 560 20,410 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 9,200 50,454 59,654 $ 84,774 $ 18,700 1,020 260 19,980 9,200 40,489 49,689 $ 70,099 $ 18,100 770 260 19,130 8,600 28,580 8,600 27,730 500 500 4,000 4,000 4,500 4,500 51,694 37,869 56,194 42,369 $ 84,774 $ 70,099 Total liabilities and stockholders' equity Weller Corporation (dollars in thousands) Sales Cost of goods sold Comparative Income Statement and Reconciliation This Year $ 83,235 40,800 Last Year $ 65,000 35,000
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