QUEATIONS 1 ( 10 marks) Presented below are the financial statements of Weller Company. WELLER COMPANY Comparative Balance Sheets December 31 Assets 2007 2006 change Cash $25,000 $18,500 Accounts receivable 24,400 22,500 Merchandise inventory 19,000 25,000 Property, plant, and equipment 65,000 70,000 less: Accumulated depreciation 14,000 10,000 Total $147,400 $146,000 Liabilities and Stockholders' Equity Accounts payable $20,600 $11, 100 Income taxes payable 7,000 10,000 Bonds payable 10,000 30,000 Common stock 50,000 45,000 Retained earnings 31,800 29,900 Total $119,400 $126,000 Additional data: net income 17300 1. Dividends declared and paid $23,900 2. During the year equipment was sold for $3,300 cash. This equipment cost $10,000 originally and had a and its accumulated depreciation was $1,200 at the time of sale. Book value $8,800