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Financial Statements for Oratz Company Appear Below Total Dividends During Year 2 Were

question 99

Multiple Choice

Financial statements for Oratz Company appear below:
$Financial statements for Oratz Company appear below: \begin{array}{|l|r|} \hline&\text { Oratz Company } \\ &\text { Income Statement } \\ &\text { For the Year Ended December 31, Year } \\ &2\\ &\text { (dollars in thousands) }\\ \hline \text { Sales (All on Account) } & \$ 1630 \\ \hline \text { Costs of Goods Sold } & \$ 1140 \\ \hline \text { Gross Margin } & \$ 490 \\ \hline \text { Operating Expenses } & \$ 190 \\ \hline \text { Net Operating Income } & \$ 300 \\ \hline \text { Interest Expense } & \$ 30 \\ \hline \text { Net Income before Taxes } & \$ 270 \\ \hline \text { Income Taxes (30\%) } & \$ 81 \\ \hline \text { Net Income } & \$ 189\\ \hline \end{array} Total dividends during Year 2 were \$ 139,000 , of which \$ 6,000 were preferred dividends. The market price of a common share on December 31, Year 2 was \$ 260 . -Oratz Company's earnings per common share for Year 2 was closest to which of the following?Do not round intermediate calculations. A) $1.74. B) $19.61. C) $20.25. D) $28.93.$
$\begin{array}{|l|r|}\hline&\text { Oratz Company } \\&\text { Income Statement } \\&\text { For the Year Ended December 31, Year } \\&2\\&\text { (dollars in thousands) }\\\hline \text { Sales (All on Account) } & \$ 1630 \\\hline \text { Costs of Goods Sold } & \$ 1140 \\\hline \text { Gross Margin } & \$ 490 \\\hline \text { Operating Expenses } & \$ 190 \\\hline \text { Net Operating Income } & \$ 300 \\\hline \text { Interest Expense } & \$ 30 \\\hline \text { Net Income before Taxes } & \$ 270 \\\hline \text { Income Taxes (30\%) } & \$ 81 \\\hline \text { Net Income } & \$ 189\\\hline\end{array}$

Total dividends during Year 2 were $\$ 139,000$ , of which $\$ 6,000$ were preferred dividends. The market price of a common share on December 31, Year 2 was $\$ 260$ .

-Oratz Company's earnings per common share for Year 2 was closest to which of the following?Do not round intermediate calculations.

Identify the components of total cost at an output of zero.

Grasp the relationship between Marginal Cost (MC), Average Variable Cost (AVC), and Average Total Cost (ATC) curves.

Analyze the concept of diminishing returns and negative returns in production.

Calculate Average Total Cost (ATC), Average Variable Cost (AVC), and Marginal Cost (MC) from given data.

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