Question - Use the following financial statement information as of the end of each year to answer this question.
2017 2016
Inventory 54,000 48,000
Current Assets 81,000 106,000
Total Assets 392,000 336,000
Current Liabilities 27,000 36,000
Total Liabilities 102,000 88,000
Total Stockholder's equity 290,000 248,000
Preferred Stock 10,000 10,000
Net Sales 784,000 697,000
Cost of goods sold 306,000 277,000
Net income 34,000 90,000
Tax expense 22,000 18,000
Interest expense 12,000 12,000
Dividends paid to preferred Stockholders 2,000 2,000
Dividends paid to common shareholders 1,000 1,000
Compute the profit margin for 2017.
4.3%
8.4%
11.7%
8.9%