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Financial statements for Larkins Company appear below: Larkins Company Statement of Financial Position December 31, Year 2 and Year 1 (dollars in thousands) Current assets:

Financial statements for Larkins Company appear below: Larkins Company Statement of Financial Position December 31, Year 2 and Year 1 (dollars in thousands) Current assets: Year 2 Year 1 Cash and marketable securities $180 $180 Accounts receivable, net 210 180 Inventory 130 120 Prepaid expenses 50 50 Total current assets 540 530 Noncurrent assets: Plant & equipment, net 1,540 1,480 ___________________ Total assets $2,110 $2,010 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) $2,760 Cost of goods sold 1,930 _____ 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 dividend yield ratio on December 31, Year 2 was closest to: A. 4.1%. B. 2.1%. C. 5.0%. D. 4.6% 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 total assets for Year 2 was closest to: A. 16.0%. B. 13.6%. C. 17.0%. D. 15.3%. 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 book value per share at the end of Year 2 was closest to: A. $76.67. B. $70.00. C. $23.33. D. $10.00

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