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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

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
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 goods sold 45,000
Gross margin $40,000
Operating expenses (15,000)
Interest expenses (5,000)
Net income $20,000

Number of shares of common stock outstanding 6,000
Market price of common stock $20
Total dividends paid $9,000
Cash provided by operations $30,000

Using the data provided for Diane Company, what is the return on total assets?

a.0.1%

b.8%

c.10%

d.1%

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