The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the question that follow.

Assets

Cash and short-term investments $30,000

Accounts receivable (net) 20,000

Merchandise inventory 15,000

Property, plant, and equipment 185,000

Total assets $250,000

Liabilities and Stockholders' Equity Current liabilities $45,000

Long-term liabilities 70,000

Stockholders' equitycommon 135,000

Total liabilities and stockholders' equity $250,000

Income Statement Sales $ 85,000

Cost of merchandise sold 45,000

Gross profit $ 40,000

Operating expenses (15,000)

Interest expense (5,000)

Net income $ 20,000

Number of shares of common stock outstanding 6,000

Market price per share of common stock $20

Total dividends paid $9,000

Net cash flows from operating activities $30,000

Using the data provided for Diane Company, what is the return on total assets? a. 10% b. 0.1% c. 8% d. 1%