4. The following information pertains to Vaughn Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets
Cash and short-term investments	$ 41000
Accounts receivable (net)	33000
Inventory	15000
Property, plant and equipment (net)	211000
Total Assets	$300000

Liabilities and Stockholders Equity
Current liabilities	$ 54000
Long-term liabilities	90000
Stockholders equitycommon	156000
Total Liabilities and Stockholders Equity	$300000

Income Statement
Sales (net)	$ 116000
Cost of goods sold	66000
Gross profit	50000
Operating expenses	26000
Net income	$ 24000

Number of shares of common stock	8000
Market price of common stock	$20
Dividends per share	0.60

What is the return on assets for Vaughn?

5. The following information pertains to Coronado Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets
Cash and short-term investments	$ 47000
Accounts receivable (net)	24000
Inventory	24000
Property, plant and equipment (net)	315000
Total Assets	$410000

Liabilities and Stockholders Equity
Current liabilities	$ 55000
Long-term liabilities	92000
Stockholders equitycommon	263000
Total Liabilities and Stockholders Equity	$410000

Income Statement
Sales (net)	$ 320000
Cost of goods sold	93000
Gross profit	227000
Operating expenses	35000
Net income	$ 192000

Number of shares of common stock	6000
Market price of common stock	$20
Dividends per share	0.40

What is the profit margin for Coronado?