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

question 71

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

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

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Definitions:

Saturated Fats

Fats that contain no double bonds between carbon molecules because they are saturated with hydrogen molecules, commonly found in animal fats and some plant oils.

Mono-unsaturated Fats

A type of healthy fat found in various foods and oils, known for its heart-healthy benefits.

Polysaccharide

Complex carbohydrates made up of long chains of monosaccharide units bound together, serving various functions in living organisms, including energy storage and structural roles.

Glycogen

A multibranched polysaccharide of glucose that serves as a form of energy storage in animals and fungi.