Plano Corporation reported net income \(\$ 24,000\); net sales \(\$ 400,000\); and average assets \(\$ 600,000\) for 2010. What is the 2010 profit margin ratio?

(a) \(6 \%\)

(c) \(40 \%\).

(b) \(12 \%\).

(d) \(200 \%\)

Use the following financial statement information as of the end of each year to answer Self-Study Questions \(12-16\).

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2010 2009 Inventory $ 54,000 $ 48,000 Current assets Total assets 81,000 106,000 382,000 326,000 Current liabilities 27,000 36,000 Total liabilities 102,000 88,000 Stockholders' equity 280,000 238,000 Net sales 784,000 697,000 Cost of goods sold 306,000 277,000 Net income 134,000 90,000 Tax expense 22,000 18,000 Interest expense 12,000 12,000 Dividends paid to preferred stockholders 20,000 20,000 Dividends paid to common stockholders 15,000 10,000