Garrott Corporations total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. Income Statement For the Year Ended December 31, Year 2 Sales (all on account) $ 1,340,000 Cost of goods sold 830,000 Gross margin 510,000 Operating expenses 465,143 Net operating income 44,857 Interest expense 9,000 Net income before taxes 35,857 Income taxes (30%) 10,757 Net income $ 25,100 The companys net profit margin percentage for Year 2 is closest to: Multiple Choice 1.9% 2.7% 3.3% 38.1%

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