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Financial Statements for Orange Company Appear Below Total Dividends During Year 2 Were

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Financial statements for Orange Company appear below:
 Financial statements for Orange Company appear below:    \begin{array}{|l|r|} \hline&\text { Orange Company } \\ &\text { Income Statement } \\ &\text { For the Year Ended December 31, Year } \\ &2\\ &\text { (dollars in thousands)  }\\ \hline \text { Sales (All on Account)  } & \$ 2830 \\ \hline \text { Costs of Goods Sold } & \$ 1980 \\ \hline \text { Gross Margin } & \$ 850 \\ \hline \text { Operating Expenses } & \$ 340 \\ \hline \text { Net Operating Income } & \$ 510 \\ \hline \text { Interest Expense } & \$ 30 \\ \hline \text { Net Income before Taxes } & \$ 480 \\ \hline \text { Income Taxes (30\%)  } & \$ 144 \\ \hline \text { Net Income } & \$ 336\\ \hline \end{array}    Total dividends during Year 2 were  \$ 156,000 , of which  \$ 18,000  were preferred dividends. The market price of a share of common stock on December 31, Year 2 was  \$ 100 . -Orange Company's average sale period (turnover in days) for Year 2 was closest to which of the following? A)  20.6 days. B)  23.2 days. C)  29.5 days. D)  33.2 days.
 Orange Company  Income Statement  For the Year Ended December 31, Year 2 (dollars in thousands)   Sales (All on Account)  $2830 Costs of Goods Sold $1980 Gross Margin $850 Operating Expenses $340 Net Operating Income $510 Interest Expense $30 Net Income before Taxes $480 Income Taxes (30%)  $144 Net Income $336\begin{array}{|l|r|}\hline&\text { Orange Company } \\&\text { Income Statement } \\&\text { For the Year Ended December 31, Year } \\&2\\&\text { (dollars in thousands) }\\\hline \text { Sales (All on Account) } & \$ 2830 \\\hline \text { Costs of Goods Sold } & \$ 1980 \\\hline \text { Gross Margin } & \$ 850 \\\hline \text { Operating Expenses } & \$ 340 \\\hline \text { Net Operating Income } & \$ 510 \\\hline \text { Interest Expense } & \$ 30 \\\hline \text { Net Income before Taxes } & \$ 480 \\\hline \text { Income Taxes (30\%) } & \$ 144 \\\hline \text { Net Income } & \$ 336\\\hline\end{array}


Total dividends during Year 2 were $156,000\$ 156,000 , of which $18,000\$ 18,000 were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $100\$ 100 .
-Orange Company's average sale period (turnover in days) for Year 2 was closest to which of the following?


Definitions:

Marginal Product

The additional output gained by employing one more unit of a given input.

Resource Maximization

It is the technique or strategy of optimally utilizing resources to achieve the highest possible output or efficiency.

Least-costly Combination

A perfect combination of resources that lowers the production cost while reaching a target output level.

Profits

Financial gains realized when the revenues from business activities exceed the expenses, costs, and taxes needed to sustain the operation.

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