question 17

The following information pertains to Crane 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 $ 41000

Accounts receivable (net) 26000

Inventory 20000

Property, plant and equipment (net) 315000

Total Assets

$402000

Liabilities and Stockholders Equity

Current liabilities $ 55000

Long-term liabilities 92000

Stockholders equitycommon 255000

Total Liabilities and Stockholders Equity

$402000

Income Statement

Sales (net) $ 306000

Cost of goods sold 103700

Gross profit 202300

Operating expenses 34000

Net income

$ 168300

Number of shares of common stock 6000

Market price of common stock $22

Dividends per share 0.60

What is the profit margin for Crane?

66%

120%

55%

51%