ALPHA MANUFACTURING COMPANY, Balance Sheet

Cash and Marketable Securities

$225,000

Accounts Receivable

890,000

Inventories (lower of cost or market)

930,000

Prepaid Expenses

10,150

Accumulated Tax Prepayments

12,000

Current Assets

2,067,150

Fixed Assets at Cost

2,500,000

less: Accumulated Depreciation

700,000

Net Fixed Asset

1,800,000

Investments, Long-Term

35,000

Goodwill

100,000

Total Assets

$4,002,150

Bank Loans and Notes Payable

$448,500

Accounts Payable

148,000

Accrued Taxes

36,000

Other Accrued Liabilities

195,500

Current Liabilities

828,000

Long-Term Debt

1,200,000

Common Stock, $1 par value

700,000

Additional Paid-in Capital

174,150

Retained Earnings

1,100,000

Total Net Worth

1,974,150

Total Liabilities and Net Worth

$4,002,150

ALPHA MANUFACTURING COMPANY, Income statement

Net Sales

$5,200,000

less: Cost of Goods Sold

4,576,000

Gross Profit

624,000

Selling, General and Administrative Expense

750,000

Depreciation

95,000

Interest Expense

75,000

Earnings Before Taxes

(296,000)

Income Taxes

0

Earnings After Tax

(296,000)

Cash Dividends

0

Increase (decrease) in Retained Earnings

($296,000)

According to these statements in Table 6-1, ALPHA's gross profit margin was ________.