Question
Galaxy United, Inc. 2011 and 2012 Balance Sheets 2011 2012 Cash $17,000 $16,500 Accounts rec. $54,100 $56,700 Inventory $189,400 $186,700 Sub-Total $260,500 $259,900 Net Fixed
Galaxy United, Inc.
2011 and 2012 Balance Sheets
2011 2012
Cash $17,000 $16,500
Accounts rec. $54,100 $56,700
Inventory $189,400 $186,700
Sub-Total $260,500 $259,900
Net Fixed assets $261,300 $282,100
Total $521,800 $542,000
Accounts Payable $128,600 $134,700
Long-term debt $147,500 $135,500
Common Stock $125,000 $140,000
Retained Earnings $120,700 $131,800
Total $521,800 $542,000
*The par value of the common stock is $1 per share.
Galaxy United, Inc.
2012 Income Statement
Net Sales $614,100
Less: Cost of goods sold 521,400
Less: depreciation 11,200
Earnings before interest and taxes $81,500
Less: Interest paid 10,100
Taxable income $71,400
Less taxes: 28,900
Net income $42,500
What is the company's Profit Margin for 2012
A.24.65%
B.2.67%
C.6.92%
D.8.87%
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