Please refer to Table

4minus1

for the following questions.

Table

4minus1

Stewart Company

Balance Sheet

Assets:
Cash and marketable securities		$600,000
Accounts receivable		900,000
Inventories		1,500,000
Prepaid expenses		75,000
Total current assets		$3,075,000
Fixed assets	8,000,000
Less: accum. depr.	(2,075,000)
Net fixed assets		$5,925,000
Total assets		$9,000,000
Liabilities:
Accounts payable		$800,000
Notes payable	700,000
Accrued taxes		50,000
Total current liabilities		$1,550,000
Longminusterm debt		2,500,000
Owner's equity (1 million shares of common stock outstanding)		4,950,000
Total liabilities and owner's equity		$9,000,000
Net sales (all credit)		$10,000,000
Less: Cost of goods sold		(3,000,000)
Selling and administrative expense		(2,000,000)
Depreciation expense		(250,000)
Interest expense		(200,000)
Earnings before taxes		4,550,000
Income taxes		(1,820,000)
Net income		$2,730,000

Based on the information in Table

4minus1,

the operating profit margin is

A) 26.4

B) 37.5

C) 47.5

D) 32.8