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%