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%