Can you please help me answer number 3 listed on the screen shot? The financial statments are listed below. Thank  you Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $1.00 last year and $0.65 this year. The market value of the company’s common stock at the end of the year was $21. All of the company’s sales are on account.   Weller Corporation Comparative Balance Sheet (dollars in thousands)   This Year Last Year   Assets               Current assets:                  Cash $ 1,190   $ 1,290        Accounts receivable, net   9,400     7,200        Inventory   12,100     12,200        Prepaid expenses   800     560                   Total current assets   23,490     21,250                   Property and equipment:                  Land   11,000     11,000        Buildings and equipment, net   38,795     34,500                   Total property and equipment   49,795     45,500                   Total assets $ 73,285   $ 66,750                   Liabilities and Stockholders' Equity               Current liabilities:                  Accounts payable $ 19,400   $ 17,600        Accrued liabilities   960     790        Notes payable, short term   250     250                   Total current liabilities   20,610     18,640     Long-term liabilities:                  Bonds payable   8,500     8,500                   Total liabilities   29,110     27,140                   Stockholders' equity:                  Common stock   500     500        Additional paid-in capital   4,000     4,000                        Total paid-in capital   4,500     4,500          Retained earnings   39,675     35,110                   Total stockholders' equity   44,175     39,610                   Total liabilities and stockholders' equity $ 73,285   $ 66,750                     Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)   This Year Last Year   Sales $ 67,000   $ 65,000     Cost of goods sold   40,000     39,000                   Gross margin   27,000     26,000                   Selling and administrative expenses:               Selling expenses   11,000     10,700     Administrative expenses   7,000     6,500                   Total selling and administrative expenses   18,000     17,200                   Net operating income   9,000     8,800     Interest expense   850     850                   Net income before taxes   8,150     7,950     Income taxes   3,260     3,180                   Net income   4,890     4,770     Dividends to common stockholders   325     500                   Net income added to retained earnings   4,565     4,270     Beginning retained earnings   35,110     30,840                   Ending retained earnings $ 39,675   $ 35,110

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Can you please help me answer number 3 listed on the screen shot? The financial statments are listed below. Thank  you

Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $1.00 last year and $0.65 this year. The market value of the company’s common stock at the end of the year was $21. All of the company’s sales are on account.

 

Weller Corporation
Comparative Balance Sheet
(dollars in thousands)
  This Year Last Year
  Assets            
  Current assets:            
     Cash $ 1,190   $ 1,290  
     Accounts receivable, net   9,400     7,200  
     Inventory   12,100     12,200  
     Prepaid expenses   800     560  
             
  Total current assets   23,490     21,250  
             
  Property and equipment:            
     Land   11,000     11,000  
     Buildings and equipment, net   38,795     34,500  
             
  Total property and equipment   49,795     45,500  
             
  Total assets $ 73,285   $ 66,750  
             
  Liabilities and Stockholders' Equity            
  Current liabilities:            
     Accounts payable $ 19,400   $ 17,600  
     Accrued liabilities   960     790  
     Notes payable, short term   250     250  
             
  Total current liabilities   20,610     18,640  
  Long-term liabilities:            
     Bonds payable   8,500     8,500  
             
  Total liabilities   29,110     27,140  
             
  Stockholders' equity:            
     Common stock   500     500  
     Additional paid-in capital   4,000     4,000  
             
       Total paid-in capital   4,500     4,500  
       Retained earnings   39,675     35,110  
             
  Total stockholders' equity   44,175     39,610  
             
  Total liabilities and stockholders' equity $ 73,285   $ 66,750  
             
 

 

Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
  This Year Last Year
  Sales $ 67,000   $ 65,000  
  Cost of goods sold   40,000     39,000  
             
  Gross margin   27,000     26,000  
             
  Selling and administrative expenses:            
  Selling expenses   11,000     10,700  
  Administrative expenses   7,000     6,500  
             
  Total selling and administrative expenses   18,000     17,200  
             
  Net operating income   9,000     8,800  
  Interest expense   850     850  
             
  Net income before taxes   8,150     7,950  
  Income taxes   3,260     3,180  
             
  Net income   4,890     4,770  
  Dividends to common stockholders   325     500  
             
  Net income added to retained earnings   4,565     4,270  
  Beginning retained earnings   35,110     30,840  
             
  Ending retained earnings $ 39,675   $ 35,110  
             
 
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