Financial Statements for Laroche Company Appear Below:

Shareholders' Equity

question 161

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 return on total assets for Year 2 was closest to which of the following?

• A) 13.0%.
• B) 14.1%.
• C) 14.6%.
• D) 15.2%.

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Definitions:

Synapse

The junction between two neurons where transmission of nerve impulses occurs through chemical messengers called neurotransmitters.

Synaptic Vesicles

Synaptic vesicles are small sacs in neurons that store neurotransmitters, which are chemical messengers released during synaptic transmission.

Synapse

The junction between two neurons or between a neuron and a muscle or gland, through which nerve impulses pass.

Axon

A thin, elongated extension of a neuron, or nerve cell, that usually transmits electrical signals from the cell body of the neuron.