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Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new
Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal 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 bonds, which were sold at their face value, was 10% The income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the company's common stock at the end of the year was $27. All of the company's sales are on account Weller Corporation Comparative Balance Sheet dollars in thousands) This Year Last Year Assets Current assets: Accounts receivable, net Inventory Prepaid expenses $ 1,160 1,220 9,400 7,000 13,200 11,200 780 540 Total current assets 24,540 19,960 Property and equipment: Land Buildings and equipment, net 10,200 10,200 41,126 39,603 51,326 49,803 $75,866 $69,763 Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $19,100 $19,100 890 210210 1,050 20,360 20,200 8,7008,700 29,060 28,900 Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: 500 500 Common stock Additional paid-in capital 4,0004.000 Total paid-in capital 4,5004,500 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2,306 36,363 46,80640,863 $75,866 $69,763 Weller Corporation Comparative Income Statement and Reconciliation
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