Financial Statements for Larned Company Appear Below:

Total Dividends During Year 2 Were

question 176

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 dividend payout ratio for Year 2 was closest to which of the following?

• A) 28.5%.
• B) 47.4%.
• C) 75.8%.
• D) 76.7%.

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Definitions:

Staff Nurses

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Generation X

The generation of people born between 1965 and 1978, who are characterized as being independent, resilient, confident, and loyal and committed to colleagues and clients over the employer; willing to share their expertise with colleagues and clients; and letting care be guided more by their client’s desire than by rules and policies in the organization.

Baby Boomers

The generation of people born between 1945 and 1964, who are characterized as being extremely hard working.

Resilient

The ability to recover quickly from difficulties or challenges, displaying toughness and adaptability in the face of adversity.