Following are the financial statements for Nas Car Corporation for the year ended December 31, 2019. Assume that all balance sheet amounts represent both average and ending figures.

Nas Car Corporation

Balance Sheet December 31, 2019

Assets

Cash $ 20,000

Marketable securities 30,000

Accounts receivable 50,000

Inventory 100,000

Long-term receivables 35,000

Property, plant, and equipment 65,000

Total assets $300,000

Liabilities and Stockholders' Equity

Current liabilities $100,000

Long-term liabilities 60,000

Stockholders' equity 140,000

Total liabilities and

stockholders' equity $300,000

Nas Car Corporation

Income Statement

For the Year Ended December 31, 2019

Net sales $400,000

Cost of goods sold 240,000

Gross margin $160,000

Operating expenses 40,000

Income before income taxes $120,000

Income taxes expense 30,000

Net income 90,000

Calculate the operating expenses as a percentage of sales.