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 $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of the year was $25. All of the company's sales are on account. Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,230 10,800 12,200 650 24,880 $ 1,350 8,400 12,400 640 22,790 10,800 44,582 55,382 $80, 262 10,800 36,496 47,296 $70,086 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $19,600 930 200 20,730 $17,900 890 200 18,990 9,900 30, 630 9,900 28,890 600 4,000 4,600 45,032 49,632 $80, 262 600 4,000 4,600 36,596 41,196 $70,086 con Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $70,000 $65,000 Cost of goods sold 36,000 37,000 Gross margin 34,000 28,000 Selling and administrative expenses: Selling expenses 11,100 10,900 Administrative expenses 7,100 6,600 Total selling and administrative expenses 18, 200 17,500 Net operating income 15,800 10,500 Interest expense 990 990 Net income before taxes 14,810 9,510 Income taxes 5,924 3,804 Net income 8,886 5,706 Dividends to common stockholders 450 450 Net income added to retained earnings 8,436 5,256 Beginning retained earnings 36,596 31, 340 Ending retained earnings $ 45,032 $36,596