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 $28. 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 Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Current liabilities: Accounts payable Liabilities and Stockholders' Equity 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 $ 1,240 9,100 12,100 630 $1,250 6,600 11,100 610 23,870 19,560 10,200 10,200 44,845 35,942 55,845 46,142 $ 65,702 $ 78,115 $ 20,000 1,050 238 21,280 8,300 29,580 $ 17,700 790 230 18,720 8,300 27,020 500 500 4,000 4,000 4,500 4,500 44,035 48,535 34,182 38,682 $ 78,115 $ 65,702 Sales Cost of goods sold Gross margin 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 $ 73,005 37,120 Last Year $ 65,000 41,000 35,885 24,000 11,300 10,700 7,000 18,300 17,585 6,980 17,600 6,400 830 830 16,755 5,570 6,782 2,228 10,053 3,342 200 580 9,853 34,182 $ 44,035 2,842 31,348 $ 34,182