The Following Information Pertains to Ortiz Company What Is the Profit Margin for Ortiz?
A)113%
B)28

question 155

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

• A)113%
• B)28.2%
• C)69%
• D)78%

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