Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Whats work out for the Common Shares Financial statements for Larosa Company appear below: Larosa Company Balance Sheet December 31 , 20X6 and 20X5 (dollars

Whats work out for the Common Shares

Financial statements for Larosa Company appear below:

Larosa Company
Balance Sheet
December 3120X6 and 20X5 (dollars in thousands)

20X620X5
Current assets:
Cash and marketable securities$150$120
Accounts receivable, net190160
Inventory150150
Prepaid expenses4040
Total current assets530470
Noncurrent assets:
Plant & equipment, net1,9901,980
Total assets$2,520$2,450
Current liabilities:
Accounts payable$140$170
Accrued liabilities1040
Notes payable, short term190200
Total current liabilities340410
Noncurrent liabilities:
Bonds payable370400
Total liabilities710810
Shareholders' equity:
Preferred shares, $20 par, 10%100100
Common shares, $10 par220220
Additional paid-in capital--common shares250250
Retained earnings1,2401,070
Total shareholders' equity1,8101,640
Total liabilities & shareholders' equity$2,520$2,450



Larosa Company
Income Statement
for the Year Ended December 3120X6 (dollars in thousands)

Sales (all on account)$1,870
Cost of goods sold1,300
Gross margin570
Operating expenses220
Net operating income350
Interest expense40
Net income before taxes310
Income taxes (30%)93
Net income$217



Dividends during 20 × 6 totaled $47 thousand, of which $10 thousand were preferred dividends.
The market price of a share of common stock on December 31, 20 × 6 was $70.

Larosa Company's dividend yield ratio on December 31, 20 × 6 was closest to?

Step by Step Solution

3.33 Rating (147 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the dividend yield ratio for Larosa Company on December 31 20X6 we need to firs... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

7th Canadian Edition Volume 2

1119048478, 978-1119048473

More Books

Students also viewed these Accounting questions