This question is from chapter 15 of Managerial Accounting 16^th edition by Ray Garrison.

Exercise 15-6 Financial Ratios for Assessing Market Performance [LO15-6] 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 960,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, 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 $26.00. All of the company's sales are on account. Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: 2,036 3,020 Accounts receivable, net Inventory Prepaid expenses 2,420 23,330 Total current assets Property and equipment: 600 600 20,600 Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: 20,400 28,200 $58,896 $51,530 Accounts payable Accrued liabilities Notes payable, short term $11,100 920 9,100 460 11,060 460 Total current liabilities Long-term liabilities: Total liabilities Stockholders' equity: Bonds payable Common stock 960 960 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 960 28,260 34,220 $51,530 40,166 $58,896 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: $95,000 $90,000 56,000 34,000 60,000 35, 000 10,100 13,600 600 12.600 Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 2370022,200 11,800 11,300 750 10,550 4,220 6,330 11,050 4,420 6,630 768 862 22,398 $34,206 $28,260 28, 260