The following information pertains to Diane Company. Assume that all balance sheet amounts represent both...
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Accounting
The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.
Assets
Cash and short-term investments
$40,202
Accounts receivable (net)
26,636
Inventory
25,068
Property, plant, and equipment
233,212
Total Assets
$325,118
Liabilities and Stockholders' Equity
Current liabilities
$59,613
Long-term liabilities
98,753
Common stock
110,502
Retained earnings
56,250
Total liabilities and stockholders' equity
$325,118
Income Statement
Sales
$90,631
Cost of goods sold
36,252
Gross margin
$54,379
Operating expenses
(25,067)
Interest expense
(4,532)
Net income
$24,780
Number of shares of common stock outstanding
5,625
Market price of common stock
$35
Total dividends paid
$9,000
Cash provided by operations
$30,000
What is the return on total assets for Diane Company?
a.1.4%
b.9.0%
c.3.4%
d.7.9%
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