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 companys common stock at the end of this year was $23. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$ 1,080	$ 1,320
Accounts receivable, net	10,700	7,900
Inventory	13,100	11,300
Prepaid expenses	700	560
Total current assets	25,580	21,080
Property and equipment:
Land	10,500	10,500
Buildings and equipment, net	41,095	37,185
Total property and equipment	51,595	47,685
Total assets	$ 77,175	$ 68,765
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 20,500	$ 18,200
Accrued liabilities	940	770
Notes payable, short term	0	200
Total current liabilities	21,440	19,170
Long-term liabilities:
Bonds payable	10,000	10,000
Total liabilities	31,440	29,170
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	39,735	33,595
Total stockholders' equity	45,735	39,595
Total liabilities and stockholders' equity	$ 77,175	$ 68,765

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 70,000	$ 65,000
Cost of goods sold	40,000	42,000
Gross margin	30,000	23,000
Selling and administrative expenses:
Selling expenses	11,400	10,400
Administrative expenses	6,900	6,300
Total selling and administrative expenses	18,300	16,700
Net operating income	11,700	6,300
Interest expense	1,000	1,000
Net income before taxes	10,700	5,300
Income taxes	4,280	2,120
Net income	6,420	3,180
Dividends to common stockholders	280	525
Net income added to retained earnings	6,140	2,655
Beginning retained earnings	33,595	30,940
Ending retained earnings	$ 39,735	$ 33,595