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.

Assets

Cash and short-term investments	$ 45,000
Accounts receivable (net)	30,000
Inventory	40,000
Property, plant and equipment	310,000

Total Assets

$425,000

Liabilities and Stockholders' Equity

Current liabilities	$ 55,000
Long-term liabilities	110,000
Stockholders' equitycommon	260,000

Total Liabilities and Stockholders' Equity

$425,000

Income Statement

Sales

$ 120,000

Cost of goods sold	65,000
Gross profit	55,000
Operating expenses	29,500

Net income

$ 25,500

Number of shares of common stock	6,000
Market price of common stock	$20
Dividends per share	.50

What is the return on assets for Ortiz?

Group of answer choices

6.0%

10.0%

5.0%

12.0%