Q1

The following information pertains to Sampson Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 45,000 Accounts receivable (net) 25,000 Inventory 20,000 Property, plant and equipment 310,000 Total Assets $400,000 Liabilities and Stockholders' EquityCurrent liabilities $ 50,000 Long-term liabilities 90,000 Stockholders' equitycommon 260,000 Total Liabilities and Stockholders' Equity $400,000 Income Statement Sales $ 300,000 Cost of goods sold 66,000 Gross profit 234,000 Operating expenses 30,000 Net income $ 204,000 Number of shares of common stock 6,000 Market price of common stock $20 Dividends per share .50 What is the profit margin for Sampson?

	A.	115%
	B.	51%
	C.	28.2%
	D.	68%