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Bavarian Sausage, Inc. posted the following balance sheet and income statement. Cash Accounts Receivable Balance Sheet $ 50,000 Accounts Payable 125,000 Notes Payable 225,000 Long-term
Bavarian Sausage, Inc. posted the following balance sheet and income statement. Cash Accounts Receivable Balance Sheet $ 50,000 Accounts Payable 125,000 Notes Payable 225,000 Long-term debt $185,000 125,000 115,000 Inventories Net Plant and Equipment 525,000 350,000 150,000 Common Stock Retained earnings Total liabilities and Stockholders' Equity Total Assets $925,000 $925,000 Income Statement Sales Cost of goods sold Depreciation $525,000 215,000 65,000 Earnings before interest and taxes 245,000 Interest expense 35,000 Net profit before taxes Taxes (@40%) 210,000 84,000 Net income $126,000 What is Bavarian Sausage, Inc.'s net profit margin? A. 40% B. 47% C. 15% D.24%
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