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 thousanda) Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year This Year Last Year Sales Cost of goods sold Gross margin Assets 79,000 74,000 Current assets: 52,000 48,000 1280 12,300 9,700 Cash 1560 27,000 26,000 Accounts, receivable, net 9,100 Inventory Prepaid expenses Total current assets 8,200 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 1,800 2,100 8,500 8,000 25,080 20,960 12,000 20,500 6,500 11,000 19,000 7,000 Property and equipment 6,000 6.000 19,000 25,000 45,960 Land 600 600 Buildings and equipment, net Total property and equipment Total assets 19,200 5,900 6,400 25,200 50,200 2.360 3,540 2,560 3,840 120 400 Liabilities & Stockholders' Equity 3,420 3,440 Current liabilities: Dividend to common stockholders 200 200 Net income added to retained earnings Accounts payable Accrued payables Notes payable, short term Total current liabilities Long-term liabilities 9,500 8,300 3.220 3,240 600 300 700 300 Retained earnings, beginning of the year 26,660 Retained earnings, end of the year 23,420 26,660 29,880 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 & stockholdere' equily 2,200 5,000 29,880 2,200 5,000 26,660 31.660 45,960 34,880 50.280