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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 31, 20X6 and 20X5 (dollars in thousands)
20X6 | 20X5 | |
Current assets: | ||
Cash and marketable securities | $150 | $120 |
Accounts receivable, net | 190 | 160 |
Inventory | 150 | 150 |
Prepaid expenses | 40 | 40 |
Total current assets | 530 | 470 |
Noncurrent assets: | ||
Plant & equipment, net | 1,990 | 1,980 |
Total assets | $2,520 | $2,450 |
Current liabilities: | ||
Accounts payable | $140 | $170 |
Accrued liabilities | 10 | 40 |
Notes payable, short term | 190 | 200 |
Total current liabilities | 340 | 410 |
Noncurrent liabilities: | ||
Bonds payable | 370 | 400 |
Total liabilities | 710 | 810 |
Shareholders' equity: | ||
Preferred shares, $20 par, 10% | 100 | 100 |
Common shares, $10 par | 220 | 220 |
Additional paid-in capital--common shares | 250 | 250 |
Retained earnings | 1,240 | 1,070 |
Total shareholders' equity | 1,810 | 1,640 |
Total liabilities & shareholders' equity | $2,520 | $2,450 |
Larosa Company
Income Statement
for the Year Ended December 31, 20X6 (dollars in thousands)
Sales (all on account) | $1,870 |
Cost of goods sold | 1,300 |
Gross margin | 570 |
Operating expenses | 220 |
Net operating income | 350 |
Interest expense | 40 |
Net income before taxes | 310 |
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?
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