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 } & \$ 4,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 310,000 \\\quad \text { Total Assets } & \$ 400,000\end{array}

\begin{array}{lr}\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\end{array}

\begin{array}{lr}\text { Income Statement }\\\text { Sales } & \$ 300,000 \\\text { Cost of goods sold } & 66,000 \\\text { Gross profit } & 234,000 \\\text { Operating expenses } & \underline{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%

Quasar Corporation Had Net Income of $300000 and Paid Dividends

Multiple Choice

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