The following information pertains to Jones 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 50,000

Accounts receivable (net) 50,000

Inventory 23,000

Property, plant, and equipment 308,000

Total assets 431,000

Liability and Stockholders Equity

Current liabilities 75,000

Long-term liabilities 120,000

Stockholders equity common 236,000

Total Liabilities and Stockholders Equity 431,000

Income Statement

Sales 265,000

Cost of goods sold 89,000

Gross profit 176,000

Operating Expenses 80,000

Net Income 96,000

Number of shares of common stock 10,000

Market price of common stock $13

Dividends per share .60

9. What is the gross profit margin?

	a	.38
	b	.66
	c	.89
	d	.54