Use This Information for Kellman Company to Answer the Questions $\text { Kellman Company }$

question 10

Multiple Choice

Use this information for Kellman Company to answer the questions that follow.
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The balance sheets at the end of each of the first two years of operations indicate the following:
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$\text { Kellman Company }$
$\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Total current assets } & \$ 600,000 & \$ 560,000 \\\text { Total investments } & 60,000 & 40,000 \\\text { Total property, plant, and equipment } & 900,000 & 700,000 \\\text { Total current liabilities } & 125,000 & 65,000 \\\text { Total long-term liabilities } & 350,000 & 250,000 \\\text { Preferred } 9 \% \text { stock, } \$ 100 \text { par } & 100,000 & 100,000 \\\text { Common stock, } \$ 10 \text { par } & 600,000 & 600,000 \\\text { Paid-in capital in excess of par-Common stock } & 75,000 & 75,000 \\\text { Retained earnings } & 310,000 & 210,000\end{array}$
-Using the balance sheets for Kellman Company, if net income is $250,000 and interest expense is $30,000 for Year 2, what are the earnings per share on common stock for Year 2?

• A) $4.16
• B) $4.32
• C) $4.02
• D) $2.49

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Definitions:

Hallucination

A perception in the absence of external stimulus that has qualities of real perception, typically auditory or visual, that can be associated with mental health disorders.

Sensory Systems

Sensory systems are the parts of the nervous system that receive and interpret information from the environment through senses like sight, hearing, touch, taste, and smell.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often characterized by delusions, hallucinations, and cognitive issues.

Hallucination

A perception in the absence of external stimulus that has qualities of real perception; hallucinations are vivid, substantial, and located in external objective space.