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 990,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their 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 companys common stock at the end of the year was $28. All of the companys sales are on account.

1.	Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

2.	Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

3.	Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

4.	Return on equity. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 5,834 $ 6,650 16,300 9,200 10,650 8,960 1,990 2,480 34,774 27,290 Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets 7,900 21,100 7,900 20,900 29,000 28,800 $63,774 $56,090 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable $ 11,400 $ 9,250 980 1,650 490 490 12,870 11,390 10,000 10,000 Total liabilities 22,870 21,390 990 5,150 990 5,150 Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 6,140 34,764 6,140 28,560 40,904 34,700 Total liabilities and stockholders' equity $63,774 $56,090 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 98,000 $93,000 Cost of goods sold 61,500 57,500 Gross margin 36,500 35,500 Selling and administrative expenses: Selling expenses 10,400 9,900 Administrative expenses 13,900 12,900 Total selling and administrative expenses 24,300 22,800 Net operating income 12,200 12,700 Interest expense 1,200 1,200 Net income before taxes 11,000 11,500 Income taxes 4,400 4,600 Net income 6,600 6,900 Dividends to common stockholders 396 Net income added to retained earnings 6,204 6,108 Beginning retained earnings 28,560 22,452 Ending retained earnings $34,764 $28,560 792