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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) Year 2
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 Accounts receivable, net Inventory Prepaid expenses Total current assets Noncurrent assets: Plant & equipment, net $180 210 130 50 570 1,540 $180 180 120 50 530 1,480 Total assets $2,110 $2,010 Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Noncurrent liabilities: Bonds payable Total liabilities Stockholders' equity: Preferred stock, $20 par, 10% Common stock, $10 par Additional paid-in capital--common stock Retained earnings Total stockholders' equity Total liabilities & stockholders' equity $100 60 90 250 480 730 120 180 240 840 1,380 $2,110 $130 60 120 310 500 810 120 180 240 660 1,200 $2,010 Larkins Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $2,760 1,930 830 330 500 50 450 135 $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. 2.1%. B. 4.1%. C. 5.0%. D. 4.6%. ***Please SHOW HOW to get this
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