Cornerstone Co. Balance Sheet Accounts Bonds Payable Cash Accounts Recelvable Preferred Stock Accounts Payable Land Common Stock Inventory Retained Earnings Unearned Rent Revenue (to be earned in 2 months) Prepaid Insurance (3-month policy) Taxes Payable \begin{tabular}{r} 12/31/17 \\ \hline 2,100 \\ 400 \\ 145 \\ 500 \\ 244 \\ 3,285 \\ 1,200 \\ 480 \\ 320 \\ 40 \\ 114 \\ 20 \end{tabular} Cornerstone Co. Income Statement Accounts For Year Ended 12/31/18 Insurance Expense Interest Expense Cost of Goods Sold Rent Revenue Net Sales Revenue Tax Expense $60321,500252,00027 Other Information 2018 Dividends to Common Shareholders 2018 Dividends to Preferred Shareholders 2018 Common Shares outstanding 2018 Preferred Shares outstanding 2018 Stock Price All Sales on credit $40$200100sh50sh$100 Note: Use the Cornerstone Co. data and the Reference Sheet to assist you in answering the following questions. What is the 2018 Gross Profit Ratio? a. 75% b. 25% c. 50% d. 20% e. 27%