18) Xavier Company reported the following income statement and balance sheet amounts on December 31, 2017.

2017 2016

Net sales revenue (all credit) $1,700,000

Cost of goods sold 1,040,000

Gross margin 660,000

Selling and general expenses 420,000

Interest expense 60,000

Net income $ 180,000

Current assets $100,000 $ 90,000

Long-term assets 830,000 800,000

Total assets $930,000 $890,000

Current liabilities $ 72,000 $ 56,000

Long-term liabilities 204,000 390,000

Common stockholders equity 654,000 444,000

Total liabilities and stockholders' equity $930,000 $890,000

Inventory and prepaid expenses account for $50,000 of the 2017 current assets.

Average inventory for 2017 is $36,000.

Average net accounts receivable for 2017 is $62,000.

Average one-day sales are $5,900.

There are 12,000 shares of common stock outstanding at the end of 2017.

The market price per share of common stock is $27 at the end of 2017.

The EPS for 2017 is equal to $1.50 per share.

NOTE: The information in the Exhibit above for question 18 to also answer questions 19 and 20.

Question 18: What is the gross margin ratio for 2017 (rounded to the nearest tenth of a percent)? (5pts)

a. 10.6%

b. 63.5%

c. 27.3%

d. 38.8 %

e.None of the answer choices is correct.

19) Refer to Exhibit above for question 17. What is the profit margin ratio for 2017 (rounded to the nearest tenth of a percent)? (5pts)

a. 10.6%

b. 1.1%

c. 27.3%

d. 38.8%

e. None of the answer choices is correct.

20) Refer to the Exhibit above for question 18. What is the return on assets for 2017 (rounded to the nearest tenth of a percent)? (5pts)

a. 19.4%

b. 51.7%

c. 19.8%

d. 197.8%

e. None of the answer choices is correct.