Financial Statements for Larned Company Appear Below:

Total Dividends During Year 2 Were

question 201

Multiple Choice

Financial statements for Larned Company appear below:



Shareholders' Equity:
$\begin{array}{|l|r|}\hline & \begin{array}{r}\text { Larned Company } \\\text { Income Statement }\\\text { For the Year Ended December 31, Year 2 }\\\text { (dollars in thousands) }\end{array} \\\hline \text { Sales (All on Account) } & \$ 2930 \\\hline \text { Costs of Goods Sold } & \$ 2050 \\\hline \text { Gross Margin } & \$ 880 \\\hline \text { Operating Expenses } & \$ 350 \\\hline \text { Net Operating Income } & \$ 530 \\\hline \text { Interest Expense } & \$ 40 \\\hline \text { Net Income before Taxes } & \$ 490 \\\hline \text { Income Taxes }(30 \%) & \$ 147 \\\hline \text { Net Income } & \$ 343 \\\hline\end{array}$
Total dividends during Year 2 were $\$ 263,000$ , of which $\$ 12,000$ were for preferred shares. The market price of a common share on December 31, Year 2 was $\$ 160$ .
-Larned Company's book value per share at the end of Year 2 was closest to which of the following?

• A) $10.00.
• B) $16.11.
• C) $63.89.
• D) $70.56.

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Definitions:

Personal Gains

Benefits or advantages gained by an individual, often from a situation or through their actions, which can be material or immaterial.

Encouraging Behavior

Actions intended to support, motivate, or promote confidence in individuals or groups.

Challenger

An entity or individual that questions, competes against, or provides alternatives to the current status quo or dominant players.

Devil's Advocate

A person who expresses a contentious opinion in order to provoke debate or test the strength of opposing arguments.