Financial Statements for Laroche Company Appear Below:

Shareholders' Equity

question 196

Multiple Choice

Financial statements for Laroche Company appear below:

Shareholders' Equity:
$\begin{array}{|l|r|}\hline & \begin{array}{r}\text { Larned Company } \\\text { Income Statement }\\\text { For the Year Ended December 31, Year 2 }\\\text { (dollars in thousands) }\end{array} \\\hline \text { Sales (All on Account) } & \$ 2250 \\\hline \text { Costs of Goods Sold } & \$ 1570 \\\hline \text { Gross Margin } & \$ 680 \\\hline \text { Operating Expenses } & \$ 270 \\\hline \text { Net Operating Income } & \$ 410 \\\hline \text { Interest Expense } & \$ 30 \\\hline \text { Net Income before Taxes } & \$ 380 \\\hline \text { Income Taxes }(30 \%) & \$ 114 \\\hline \text { Net Income } & \$ 266 \\\hline\end{array}$
Total dividends during Year 2 were $\$ 166,000$ , of which $\$ 10,000$ were preferred dividends. The market price of a common share on December 31, Year 2 was $\$ 150$ .

-Laroche Company's earnings per common share for Year 2 was closest to which of the following?

• A) $3.71.
• B) $10.67.
• C) $11.08.
• D) $15.83.

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Definitions:

Thoracic Wall

The part of the anatomy that forms a protective boundary around the thoracic cavity, which contains the lungs and heart; comprises the rib cage, spine, and sternum.

Diaphragm

A muscular and membranous partition separating the abdominal and thoracic cavities and plays a major role in breathing.

Dead Space

Areas in the respiratory system that do not participate in gas exchange, including the nasal cavities, trachea, and bronchi.

Lung Compliance

Lung compliance refers to the ease with which the lungs can be expanded, determined by the elastic resistance of the lung tissue and chest wall to stretching during inhalation.