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 700,000 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 $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet Assets Current assets: (dollars in thousands) This Last Year Year Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: $ 1,100 $1,260 9,100 13,900 630 6,700 10,800 700 24,730 19,460 Land 9,300 9,300 Buildings and equipment, net 48,426 39,608 Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: 57,726 48,908 $ $ 82,456 68,368 $ $ Accounts payable 20,400 18,400 Accrued liabilities 940 780 Notes payable, short term 0 140 Total current liabilities 21,340 19,320 Long-term liabilities: Bonds payable 8,200 8,200 Total liabilities 29,540 27,520 Stockholders' equity: Common stock 2,000 2,000 Additional paid-in capital 4,000 4,000 Total paid-in capital 6,000 6,000 Retained earnings 46,916 34,848 Total stockholders' equity 52,916 40,848 Total liabilities and stockholders" $ $ equity 82,456 68,368 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses This Year $ Last Year $ 76,000 65,000 37,000 40,000 39,000 25,000 10,700 10,500 6,900 6,000 Total selling and administrative expenses 17,600 16,500 Net operating income Interest expense 21,400 8,500 820 820 Net income before taxes 20,580 7,680 Income taxes 8,232 3,072 Net income 12,348 4,608 Dividends to common stockholders 280 700 Net income added to retained earnings 12,068 3,908 Beginning retained earnings 34,848 30,940 $ $ Ending retained earnings 46,916 34,848