Reference: 14-01
Financial Statements for Larned Company Appear Below:
Larned

question 29

Multiple Choice

Reference: 14-01
Financial statements for Larned Company appear below:
Larned Company
Balance Sheet
December 31, 20X6 and 20X5 (dollars in thousands) $$\begin{array} { | c | l | l | } \hline & 20 X 6 & 20 \times 5 \\\hline \text { Current assets: } & & \\\hline \text { Cash and marketable securities } & \$ 130 & \$ 100 \\\hline \text { Accounts receivable, net } & 150 & 130 \\\hline \text { Inventory } & 100 & 100 \\\hline \text { Prepaid expenses } & 20 & 20 \\\hline \text { Total current assets } & 400 & 350 \\\hline \text { Noncurrent assets: } & & \\\hline \text { Plant \& equipment, net } &{ 1,640 } & 1,600 \\\hline \text { Total assets } & \underline { \$ 2,040 } & \underline { \$ 1,950 } \\\hline & & \\\hline \text { Current liabilities: } & & \\\hline \text { Accounts payable } & \$ 290 & \$ 280 \\\hline \text { Accrued liabilities } & \underline { 110 } & 80 \\\hline \text { Total current liabilities } & 400 & 360 \\\hline \text { Stockholders' equity: } & & \\\hline \text { Preferred stock, \$20 par, 10\% } & 120 & 120 \\\hline \text { Common stock, \$10 par } & 660 & 690 \\\hline \text { Retained earnings } & 860 & 780 \\\hline \text { Total stockholders' equity } & { 1,640 }& { 1,590 } \\\hline \text { Total liabilities \& stockholders' equity } & \underline { \$ 2,040 } & \underline { \$ 1,950 } \\\hline\end{array}$$ Larned Company
Income Statement
For the Year Ended December 31, 20X6 (dollars in thousands) $$\begin{array} { | l | r | } \hline \text { Sales (all on account) } & \$ 2,930 \\\hline \text { Cost of goods sold } & 2,050 \\\hline \text { Gross margin } & 880 \\\hline \text { Operating expenses } & 350 \\\hline \text { Net operating income } & 530 \\\hline \text { Interest expense } & 40 \\\hline \text { Net income before taxes } & 490 \\\hline \text { Income taxes (30\%) } & 147 \\\hline \text { Net income } & \$ 343 \\\hline\end{array}$$ Dividends during 20X6 totalled $263 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, 20X6 was $160.
Included in operating expenses was depreciation expense of $20,000. No non-current assets were sold.
-Cash flow from financing activities was?

• A)$(20,000)
• B)$(293,000)
• C)$10,000
• D)$(30,000)

Recognize the processes and structures that lead to the creation and maintenance of power among managers.

Identify the bases and sources of power in an organizational context.

Differentiate between power and politics within organizations.

Explain the impact of power dynamics on organizational learning and change.

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Definitions:

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

Regression Formula

A mathematical equation used in statistical analysis to predict the value of a dependent variable based on the value(s) of one or more independent variables.

Predicted Income

An estimate of the amount of money an individual, business, or organization is expected to receive over a specific period.

Regression Formula

An equation used in statistical analysis to predict the value of a dependent variable based on one or more independent variables.