Examlex

Solved

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

question 126

Multiple Choice

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.  Assets  Cash and short-term investments $45,000 Accounts receivable (net)  30,000 Inventory 40,000 Property, plant and equipment 310,000 Total Assets $425,000 Liabilities and Stockholders’ Equity  Current liabilities $55,000 Long-term liabilities 110,000 Stockholders’ equity-common 260,000 Total Liabilities and Stockholders’ Equity $25,500 Income Statement  Sales $120,000 Cost of goods sold 65,000 Gross profit 55,000 Operating expenses 29,000 Net income $25,500 Number of shares of common stock 6,000 Market price of common stock $20 Dividends per share .50\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 } & 310,000 \\\text { Total Assets }&\$425,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 55,000 \\\text { Long-term liabilities } & 110,000 \\\text { Stockholders' equity-common } & 260,000 \\\text { Total Liabilities and Stockholders' Equity }&\$25,500\\\\\text { Income Statement }\\\text { Sales } & \$ 120,000 \\\text { Cost of goods sold } & 65,000 \\\text { Gross profit } & 55,000 \\\text { Operating expenses } & 29,000 \\ \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?


Definitions:

Brown Decision

Refers to the landmark 1954 U.S. Supreme Court case Brown v. Board of Education, which declared state laws establishing separate public schools for black and white students to be unconstitutional.

Judicial Power

The authority granted to courts and judges to interpret and apply the law, adjudicate conflicts, and enforce rulings.

Consumer Capitalism

An economic system driven by consumer spending on goods and services, often characterized by the encouragement of goods consumption.

Middle Eastern Countries

Nations located in the Middle East, a region primarily in Western Asia and Northeast Africa, characterized by distinct cultural, religious, and geopolitical traits.

Related Questions