Question Completion Status: Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm ha amortization charges, it does not lease any assets, none of its debt must be retired during the and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2018 Cash and securities $3,000 Accounts receivable 15,000 Inventories 18,000 Total current assets $36,000 Net plant and equipment $24,000 $60,000 Total assets Liabilities and Equity Accounts payable $18,630 Accruals 8,370 Notes payable 6,000 Total current liabilities $33,000 $9,000 Long-term bonds Total liabilities $42,000 Question Completion Status: Common stock $5,040 12,960 Retained earnings Total common equity Total liabilities and equity $18,000 $60,000 2018 $84,000 78,120 1,680 Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes $4,200 900 $3,300 1,320 Net income $1,980 500.00 Other data: Shares outstanding (millions) Common dividends (millions of $) Intrate on notes payable & L-T bonds Federal plus state income tax rate $693.00 6% 40% Taxes 1,320 Net income $1,980 500.00 $693.00 Other data: Shares outstanding (millions) Common dividends (millions of $) Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 6% 40% $47.52 Refer to Exhibit 4.1. What is the firm's profit margin? Do not round your intermediate calculations. a. 1.84% b. 2.36% c. 2.48% d. 1.82% e. 2.52%