Financial Statements for Larned Company Appear Below:

Total Dividends During Year 2 Were

question 162

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 yield ratio on December 31,Year 2 was closest to which of the following?

• A) 5.5%.
• B) 8.3%.
• C) 8.7%.
• D) 9.1%.

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Definitions:

Claim

A formal request or demand for payment or another benefit, based on the terms of an insurance policy or contract.

Trust Fund

A legal entity created to hold assets for the benefit of specific individuals or organizations, managed by a trustee.

Hold-Back

The retention of a part of the contract price by the owner as required under construction lien legislation to ensure payment of subcontractors and suppliers of materials.

Suppliers Of Goods And Services

Entities or individuals that provide the market with products or perform tasks as a business.