The following information pertains to Skysong, Inc. 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 $ 61000

Accounts receivable (net) 35000

Inventory 25000

Property, plant and equipment 239000

Total Assets $360000

Liabilities and Stockholders Equity

Current liabilities $ 55000

Long-term liabilities 72000

Stockholders equitycommon 233000

Total Liabilities and Stockholders Equity $360000

Income Statement

Sales revenue $89000

Cost of goods sold 42000

Gross profit 47000

Operating expenses 23000

Net income $ 24000

Number of shares of common stock 20000

Market price of common stock $15

Dividends per share on common stock 1.3

Cash provided by operations $46000

What is the profit margin for this company?

a)22.3%

b)19.0%

c)27.0%

d)46.4%