Financial statements for Larkins Company appear below:
Larkins Company
Statement of Financial Position
December 31, Year 2 and Year 1
(dollars in thousands)
					Year 2	Year 1
Current assets:
Cash and marketable securities					180	180
Accounts receivable, net					210	180
Inventory					130	120
Prepaid expenses					50	50
Total current assets					570	530
Noncurrent assets:
Plant & equipment, net					1540	1480
Total assets					2110	2010
Current liabilities:
Accounts payable					100	130
Accrued liabilities					60	60
Notes payable, short term					90	120
Total current liabilities					250	310
Noncurrent liabilities:
Bonds payable					480	500
Total liabilities					730	810
Stockholders' equity:
Preferred stock, $20 par, 10%					120	120
Common stock, $10 par					180	180
Additional paid-in capital--common stock					240	240
Retained earnings					840	660
Total stockholders' equity					1380	1200
Total liabilities & stockholders' equity					2110	2010
Larkins Company
Income Statement
For the Year Ended December 31, Year 2
(dollars in thousands)
Sales (all on account)					2760
Cost of goods sold					1930
Gross margin					830
Selling and administrative expense					330
Net operating income					500
Interest expense					50
Net income before taxes					450
Income taxes (30%)					135
Net income					315
Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. The
market price of a share of common stock on December 31, Year 2 was $150.
Larkins Company's return on common stockholder's equity for Year 2 was closest to:
23.50%	26.90%	25.90%	24.40%