The Following Information Pertains to Ortiz Company What Is the Return on Assets for Ortiz?
A) 6

The following information pertains to Ortiz Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } & 30,000 \\\text { Inventory } & 40,000 \\\text { Property, plant and equipment } & \underline{310,000} \\\quad \text { Total Assets } & \$ 425,000 \\\end{array}$

$\begin{array}{lr}\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 55,000 \\\text { Long-term liabilities } & 110,000 \\\text { Stockholders' equity—common } & 260,000 \\\quad \text { Total Liabilities and Stockholders' Equity } & \$ 425,000\end{array}$

$\begin{array}{lr}\text { Income Statement }\\\text { Sales } & \$ 120,000 \\\text { Cost of goods sold } & 65,000 \\\text { Gross profit } & 55,000 \\\text { Operating expenses } & 29,500 \\\quad \text { Net income } & 25,500 \\\\\text { Number of shares of common stock } &\$ 6,000 \\\text { Market price of common stock } &\$20 \\\text { Dividends per share } & .50\end{array}$
What is the return on assets for Ortiz?

A) 6.0%
B) 5.0%
C) 10.0%
D) 12.0%