#57

The following information pertains to Concord Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets
Cash and short-term investments	$ 44000
Accounts receivable (net)	27000
Inventory	17000
Property, plant and equipment (net)	302000
Total Assets	$390000

Liabilities and Stockholders Equity
Current liabilities	$ 49000
Long-term liabilities	80000
Stockholders equitycommon	261000
Total Liabilities and Stockholders Equity	$390000

Income Statement
Sales (net)	$ 280000
Cost of goods sold	75600
Gross profit	204400
Operating expenses	28000
Net income	$ 176400

Number of shares of common stock	7000
Market price of common stock	$18
Dividends per share	0.40

What is the profit margin for Concord?

73%

37%

63%

116%