Financial Statements for Larned Company Appear Below:

Total Dividends During Year 2 Were

question 39

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 return on common shareholders' equity for Year 2 was closest to which of the following?

• A) 26.9%.
• B) 27.9%.
• C) 29.8%.
• D) 30.9%.

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Definitions:

Genotype

The genetic makeup of an organism, consisting of both the visible traits and those not expressed.

Genetic Makeup

The set of genes or genetic material present in an organism's cells that determines their characteristics.

Behavioural Genetics

The field of study that examines the role of genetic and environmental factors in shaping behaviors and traits.

Inherited Traits

Genetic characteristics passed down from parents to offspring, determining various physical and, to some extent, psychological features of individuals.