Use this information for Kellman Company to answer the question that follow.

The balance sheets at the end of each of the first two years of operations indicate the following:

Kellman Company
	Year 2	Year 1
Total current assets	$623,000	$590,200
Total investments	60,700	41,900
Total property, plant, and equipment	872,000	759,000
Total current liabilities	109,400	88,300
Total long-term liabilities	281,100	225,800
Preferred 9% stock, $100 par	89,600	89,600
Common stock, $10 par	545,600	545,600
Paid-in capital in excess of parCommon stock	67,700	67,700
Retained earnings	462,300	374,100

Using the balance sheets for Kellman Company, if net income is $119,500 and interest expense is $32,500 for Year 2, what is the return on total assets for the year (rounded to two decimal places)?

a.8.59%

b.10.32%

c.5.90%

d.7.68%