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 companys common stock at the end of this year was $25. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$ 1,240	$ 1,350
Accounts receivable, net	10,200	8,400
Inventory	12,600	10,600
Prepaid expenses	770	550
Total current assets	24,810	20,900
Property and equipment:
Land	10,800	10,800
Buildings and equipment, net	45,013	35,817
Total property and equipment	55,813	46,617
Total assets	$ 80,623	$ 67,517
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 20,300	$ 18,700
Accrued liabilities	960	810
Notes payable, short term	240	240
Total current liabilities	21,500	19,750
Long-term liabilities:
Bonds payable	8,300	8,300
Total liabilities	29,800	28,050
Stockholders' equity:
Common stock	500	500
Additional paid-in capital	4,000	4,000
Total paid-in capital	4,500	4,500
Retained earnings	46,323	34,967
Total stockholders' equity	50,823	39,467
Total liabilities and stockholders' equity	$ 80,623	$ 67,517

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 80,910	$ 64,000
Cost of goods sold	42,920	39,000
Gross margin	37,990	25,000
Selling and administrative expenses:
Selling expenses	10,600	10,700
Administrative expenses	7,300	6,300
Total selling and administrative expenses	17,900	17,000
Net operating income	20,090	8,000
Interest expense	830	830
Net income before taxes	19,260	7,170
Income taxes	7,704	2,868
Net income	11,556	4,302
Dividends to common stockholders	200	375
Net income added to retained earnings	11,356	3,927
Beginning retained earnings	34,967	31,040
Ending retained earnings	$ 46,323	$ 34,967