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 $600,000$ 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\mathrm{.}75$ last

year and $$0\mathrm{.}40$ this year. The market value of the company's common stock at the end of this year was $$30.$ All of the company's sales

are on account.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 $600,000$ 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 $$0\mathrm{.}75$ last year and $$0\mathrm{.}40$ this year. The market value of the company$$s common stock at the end of this year was $$30.$ All of the company$$s sales are on account.$\backslash$table$[[\backslash$table$[[$Weller Corporation$],[$Comparative Balance Sheet$],[($dollars in thousands$)]],$This Year,Last Year$],[$Assets$],[$Current assets:$],[$Cash$,$$$1,260,$$$1,210],[$Accounts receivable, net,$9,500,8,300],[$Inventory$,12,500,11,700],[$Prepaid expenses,$700,650],[$Total current assets,$23,960,21,860],[$Property and equipment:$],[$Land$,10,100,10,100],[$Buildings and equipment, net,$52,462,41,116],[$Total property and equipment,$62,562,51,216],[$Total assets,$$86,522,$$$73,076],[\backslash$table$[[$Liabilities and Stockholders' Equity$],[$Current liabilities:$]]],[\backslash$table$[[$Current liabilities:$],[$Accounts payable$]],$$$19\mathrm{.}800,$$$19\mathrm{.}000],[$Accrued liabilities,$1,080,770],[$Notes payable, short term,$280,280],[$Total current liabilities,$21,160,20,050],[$Long$-$term liabilities:$],[$Bonds payable,$9,900,9,900],[$Total liabilities,$31,060,29,950],[$Stockholders$\text{'}$ equity:$],[$Common stock,$600,600],[$Additional paid$-$in capital,$4,000,4,000],[$Total paid$-$in capital,$4,600,4,600],[$Retained earnings,$50,862,38,526],[$Total stockholders' equity,$55,462,43,126],[$Total liabilities and stockholders' equity,$$86,522,$$$73,076]]$

Weller Corporation

Comparative Balance Sheet

$($dollars in thousands$)$

This Year Last Year

Assets

Current assets:

Cash $ $1,260$ $ $1,210$

Accounts receivable, net $9,5008,300$

Inventory $12,50011,700$

Prepaid expenses $700650$

Total current assets $23,96021,860$

Property and equipment:

Land $10,10010,100$

Buildings and equipment, net $52,46241,116$

Total property and equipment $62,56251,216$

Total assets $ $86,522$ $ $73,076$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $19,800$ $ $19,000$

Accrued liabilities $1,080770$

Notes payable, short term $280280$

Total current liabilities $21,16020,050$

Long$-$term liabilities:

Bonds payable $9,9009,900$

Total liabilities $31,06029,950$

Stockholders' equity:

Common stock $600600$

Additional paid$-$in capital $4,0004,000$

Total paid$-$in capital $4,6004,600$

Retained earnings $50,86238,526$

Total stockholders' equity $55,46243,126$

Total liabilities and stockholders' equity $ $86,522$ $ $73,076$

Weller Corporation

Comparative Income Statement and Reconciliation

$($dollars in thousands$)$

This Year Last Year

Sales $ $74,000$ $ $65,000$

Cost of goods sold $34,00034,000$

Gross margin $40,00031,000$

Selling and administrative expenses:

Selling expenses $10,50010,500$

Administrative expenses $7,2006,800$

Total selling and administrative expenses $17,70017,300$

Net operating income $22,30013,700$

Interest expense $990990$

Net income before taxes $21,31012,710$

Income taxes $8,5245,084$

Net income $12,7867,626$

Dividends to common stockholders $450240$

Net income added to retained earnings $12,3367,386$

Beginning retained earnings $38,52631,140$

Ending retained earnings $ $50,862$ $ $38,526$