Shorty Jones wants to buy a one-way bus ticket to Mule-Snort, Pennsylvania. The ticket costs $142, but Mr. Jones has only $80. If Shorty puts the money in an account that pays 9% interest compounded monthly, how many months must Shorty wait until he has $142 (round to the nearest month)?

Table l

Smith Company Balance Sheet

Assets:

Cash and marketable securities$300,000

Accounts receivable$2,215,000

Inventories$1,837,500

Prepaid expenses$24,000

Total current assets$3,286,500

Fixed assets$2,700,000

Less: accumulated depreciation$1,087,500

Net fixed assets$1,612,500

Total assets$4,899,000

Liabilities:

Accounts payable$240,000

Notes payable$825,000

Accrued taxes$42.500

Total current liabilities$1,107,000

Long-term debt$975,000

Owner's equity$2,817,000

Total liabilities and owner's equity$4,899,000

Smith Company Income Statement

Sales (all credit)$6,375,000

Less: Cost of goods sold$4,312,500

Selling and administrative expense$1,387,500

Depreciation expense$135,000

Interest expense$127.000

Earnings before taxes$412,500

Income taxes$225,000

Net income$187,500

QUESTION:

Based on the information in Table 1, the net profit margin is:

4.61%

3.00%

1.97%

5.33%