Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of S) Assets 2016 Cash and securities $2,145 Accounts receivable 8,970 Inventories 12.480 Total current assets $23,595 Net plant and equipment $15.405 Total assets $39,000 Liabilities and Equity Accounts payable 57,410 Accruals 4,290 Notes payable 5,460 Total current liabilities $17,160 Lambands $7.800 $7,800 Long-term bonds Total liabilities $24,960 Common stock $5,460 Retained earnings 8,580 Total common equity $14,040 Total liabilities and equity $39,000 2016 Income Statement (Millions of $) Net sales $58,500 Operating costs except depreciation 54,698 Depreciation 1,024 Earnings before interest and taxes (EBIT) $2,779 Less interest 829 Earnings before taxes (EBT) $1,950 Taxes 683 Net income $1,268 Other data Other data: Shares outstanding (millions) 500.00 Common dividends (millions of S) $443.63 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 35% Year-end stock price $30.42 Refer to Exhibit 4.1. What is the firm's operating margin? Do not round your intermediate calculations. 4.23% 4.32% O 5.80% O 3.80% 4.75% Previous Page Page 3 of 1