Weller Corporation Comparative Income Statement and Reconciliation dollars in thousands) Sales Cost of goods sold This Year Last Year $69,000 $65,000 40,000 34,000 Gross margin 29,000 31,000 Selling and administrative expenses: Selling expenses Administrative expenses 11,200 10,800 6,900 6,300 18,100 17,100 10,900 13,900 Total selling and administrative expenses Net operating income Interest expense 980 980 Net income before taxes Income taxes 9,920 2,920 3,968 5,168 5,952 375 7,752 Net income Dividends to common stockholders 375 Net income added to retained earnings Beginning retained earnings 5,577 7,377 38,017 30,640 Ending retained earnings $43,594 $38,017