Saved 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. Th 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 this year was $24. All of the company's sale are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 Weller Corporation. This Year Last Year $ 1,170 9,800 $1,390 8,100 12,800 730 11,600 638 24,500 21,728 10,800 39,341 10,800 34,008 50,141 44,808 $ 74,641 $ 66,528 $ 19,000 $ 17,600 1,010 260 848 260 28,270 18,700 8,200 28,478 8,200 26,900 700 700 4,000 4,000 4,700 4,700 41,471 34,928 46,171 39,628 $ 74,641 $ 66,528 Comparative Income Statement and Reconciliation Sales Cost of goods sold: Gross margin Selling expenses (dollars in thousands) This Year Last Year $ 70,000 $ 64,000 40,000 40,000 30,000 24,000 10,700 10,100 6,700 6,300 17,400 16,400 12,600 7,600 828 820 11,780 6,788 4,712 2,712 7,068 4,068 525 6,543 34,928 280 3,788 31,140 Selling and administrative expenses: Administrative expenses Total selling and administrative expenses Net operating income Net income before taxes Interest expense Income taxes. Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings $ 41,471 $ 34,928