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 880,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at the face value, was 12% The income tax rate was 40% and the dividend per share of common stock was $0 40 this year. The market value of the company's common stock at the end of the year was $2200 All of the company's sales are on account Wollier Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets Cash $ 3,508 $ 4,340 Accounts receivable, net 15,200 10 150 Inventory 10.100 8,520 Prepaid expenses 1.880 Total current assets 30,688 25 270 2,260 Property and equipment Land Buildings and equipment, net 6800 20,000 6,800 19,800 Total property and equipment 28,800 26,600 SK1020 Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses $ 3,508 $ 4,340 15,200 10,150 10,100 8,520 1,880 2,260 Total current assets 30,688 25,270 6,800 20,000 6.800 19,800 Property and equipment Land Buildings and equipment, net Total property and equipment Total assets 26,800 26,600 $57,488 $51,870 $10,300 760 380 $ 8.700 1,100 380 Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued liabilities Notes payable short term Total current liabilities Long-term liabilities Bonds payable Total liabilities 11.440 10 180 8.750 8,750 20190 18,930 880 4,600 880 4.600 Stockholders' equity Common stock Additional paid in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 5.480 31 818 37 298 5,480 27 460 32.940 557 488 $51870 Weller om Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $87,000 $82,000 Cost of goods sold 56 000 52,000 Gross margin 31,000 30,000 Selling and administrative expenses Selling expenses Administrative expenses 9,300 12,800 8 800 11,800 Total selling and administrative expenses 22, 100 20,600 Net operating income Interest expense 8.900 1.050 9.400 1.050 Net income before taxes Income taxes 7 850 3.140 8.350 3 340 Net income Dividends to common stockholders 4,710 352 5,010 660 Net income added to retained earnings Beginning retained earnings 4,358 27 460 4,350 23,110 Ending retained earnings $31,818 $27 460 3. Dividend payout ratio (Round your intermediate calculations and final answer to 2 decimal places.) Dividend payout ratio 7 48%