The Following Information Pertains to Newman Company Liabilities and Stockholders' Equity

Multiple Choice

The following information pertains to Newman Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets $$\begin{array} { l r } \text { Cash and short-term investments } & \$ 40,000 \\\text { Accounts receivable (net) } & 30,000 \\\text { Inventory } & 25,000 \\\text { Property, plant, and equipment } & 215,000 \\\text { Total Assets } & \$ 310,000\end{array}$$ Liabilities and Stockholders' Equity $$\begin{array} { l r } \text { Current liabilities } & \$ 60,000 \\\text { Long-term liabilities } & 95,000 \\\text { Common stock, no par } & 80,000 \\\text { Retained earnings } & 75,000 \\\text { Total liabilities and stockhol ders' equity } & \$ 310,000\end{array}$$ Income Statement $$\begin{array} { l r } \text { Sales } & \$ 90,000 \\\text { Cost of goods sold } & 45,000 \\\text { Gross margin } & \$ 45,000 \\\text { Operating expenses } & 20,000 \\\text { Net income } & \$ 25,000\end{array}$$ $$\begin{array} { l r } \text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 40 \\\text { Dividends per share } & \$ 1.00 \\\text { Cash provided by operations } & \$ 40,000\end{array}$$

What is the return on total assets for this company?

A) 8.1%
B) 6.8%
C) 10.5%
D) 16.1%