Case 2 Comparative financial statements for Weller Corporation for the fi scal year ending December 31 appear below. The company did not issue any new common or preferred stock during the year. A total of 800,000 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 $0.25. The market value of the company's common stock at the end of the year was $18. All of the company's sales are on account. Use 365 days for the ratios. Weller Corporation Weller Corporation Comparative Balance Sheet (dollars in thousande) Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year This Year Last Year Assets Sales Cost of goods sold Gross margin 79,000 74,000 Current assets: 52,000 27,000 48.000 Cash 1280 1560 9,100 8,200 26,000 Accounts, receivable, net 12,300 9.700 Selling and administrative expenses: Selling expenses Administrative expenses Total selling & admin expenses Net operating income Interest expense Net income before taxes Income taxes (40%) Net income Dividends to preferred stockholders Net income remaining for common stockholdert Dividend to common stockholders Net income added to retained earnings Inventory Prepaid expenses Total current assets 1,800 2,100 8,500 8,000 11.000 19,000 25,080 20,960 12,000 20,500 6,500 600 Property and equipment Land 7,000 600 6,000 6,000 Buildings and equipment, net Total property and equipment Total assets 19,200 25,200 50.20 19,000 5,900 6,400 2.360 3,540 25,000 2,560 45,960 3,840 120 400 3,420 Liabilities & Stockholders' Equity Current liabilities: 3,440 200 200 Accounts payable Accrued payables Notes payable, short term Total current liabilities Long-term liabilities 9,500 600 8,300 3,220 3,240 700 300 Retained earnings, beginning of the year Retained earrings, end of the year 26,660 23,420 300 29,800 26,660 10,400 9,300 Bonds payable Total liabilities 5,000 5,000 15,400 14,300 Stockholders' equity. Preferred stock 2.000 2,000 Common stock 800 800 Additional paid-in capital Total paid-in capital Retained Earnings Total stockholders' equity Total liabilities & stockholders' equity 2.200 2,200 5.000 29,880 34,880 50,280 5,000 26,660 31.660 45,960