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 700,000 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 $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $ 1,260 6,600 12,100 $ 1,140 Cash Accounts receivable, net Inventory Prepaid expenses 9,600 13,400 730 700 Total current assets 24,870 20,660 Property and equipment: Land Duildings and equipment, net Total property and equipment 10,300 10,300 36,695 46,995 39,029 49,329 $74, 199 $67,655 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Acerued liabilities $19,200 990 $18,600 730 190 190 Notes payable, short tern Total current liabilitien 20,380 19,520 Long-term 1iabilities: Bonds payable Total liabilities Stockholders' equity: Common stock 9,000 28,520 9,000 29,380 700 700 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 4,000 4,700 40,119 44,819 4,000 4,700 34,435 39,135 Total liabilities and stockholders' equity $74,199 $67,655 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $72,090 43,350 28,740 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses $64,000 41,000 23,000 10,700 7,200 10,100 6,300 16,400 6,600 Total selling and administrative expenses Net operating income Interest expense 17,900 10,840 900 900 Net income before taxes 9,940 3,976 5,964 280 5,700 2,280 3,420 525 Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings 5,684 2,895 34,435 31,540 Ending retained earnings $40,119 $34,435 1. Accounts receivable tumover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle days days days 6. Total asset turnover