The Following Information Pertains to Ortiz Company What Is the Profit Margin for Ortiz?
A) 113%
B)

question 10

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. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & \underline{310,000} \\\text { Total Assets } & \$ 400,000\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 50,000 \\\text { Long-term liabilities } & 90,000 \\\text { Stockholders' equity—common } & \underline{260,000} \\\text { Total Liabilities and Stockholders' Equity } & \$ 400,000\\\text { Income Statement }\\\text { Sales } & \$ 300,000 \\\text { Cost of goods sold } & 66,000 \\\text { Gross profit } & 234,000 \\\text { Operating expenses } & \quad 27,000 \\\quad \text { Net income } & \$ 207,000\\\\\text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Dividends per share } & .50\end{array}$ What is the profit margin for Ortiz?

• A) 113%
• B) 28.2%
• C) 69%
• D) 78%

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Definitions:

Normal Distribution

A bell-shaped curve that represents the spread of a variable in a way that most occurrences take place around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values relative to the mean.

Crystallized Intelligence

The ability to use learned knowledge and experience effectively.

Primary Mental Abilities

Fundamental skills and cognitive functions such as reasoning, memory, and perception that are considered essential for intelligence.