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:

Resocialization

The process through which individuals undergo radical changes in their beliefs, behaviors, and social norms, often occurring in total institutions.

Mead's Three Stages

The theory proposed by George H. Mead that explains the process of socialization in three stages: preparatory, play, and game stage.

Role-taking

The process of stepping into another person's shoes to understand their perspective and behavior, often used in social psychology and sociology to explain social interactions.

Preparatory

Relating to or serving as a preparation; introductory or meant to get ready for something that is to come.