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

Exercise 15-5 Financial Ratios for Assessing Profitability [LO15-5] 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 1,000,000 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 $28. All of the company's sales are on account. Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses 1,300 1,610 250 16,400 0,700 2,000 Total current assets Property and equipment: 30,400 ,000 Buildings and equipment, net Total property and equipment Total assets Liabilities and StockholdersEquity Current liabilities: 29:200 29,000 $59,600 $51,360 $11,500 $ 9,300 Accounts payable Accrued liabilities Notes payable, short term 1,000 13,000 5,000 500 Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: 18,000 16,500 Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders'equity Total 1iabilities and stockholders' equity 200 28, 660 34,860 $59,600 $51,360 35,400 41,600 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: $99,000 $94,000 04000 58,000 36,000 Selling expenses 10,500 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 14.000 13,000 24,500 12,500 600 11,900 23,000 13,000 400 4,960 4,760 800 6,640 22,020 $35,400 $28,660 400 6,740 28,660