The gross margin percentage for Year 2 is: (Round your answer to 1 decimal place.)

49.3%

8.6%

10.8%

6.0%

Hartzog Corporatlon's most recent balance sheet and Income statement appear below: Statement of Financlal Positlon December 3 Year 2 and Year 1 (In thousands of dollars) Assets Current assets: Cash 250 220 330 310 Accounts recelvable Inventory 200 210 70 Prepaid expenses Total current asset 850 810 Plant and equipment,net 780 790 Total assets $1.630 600 Liabilities and Stockholders' Equity Current lab lties: Accounts payable 270 240 Accrued lablittle 50 50 Notes payable, short term 110 110 Total current liablitl 430 400 Bond payable 230 250 Total liablites 660 650 ders' equity Preferred Stock.$100 par Maue. 5% 100 1000 Common stock. S2 par value 400 400 l pald-In-Capital--Common stock 260 260 210 90 Retained earnings Total Stockholders equit 97O 950 SL600 Total liabllities & Stockholders' equity Income Statement For the Year Ended December 31, Year 2 (In thousands of dollars) $1.420 Sales (all on account) Cost goods sold 720 Gross margin 7700 Selling and administratve expense S46 Net Operating Income 154 Interest expense 32 122 me before taxes Income taxes 30% 37 35 Net Income DIvidends on common stock during Year 2 totaled $60 thousand. DIVIdends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.11 per share. The gross margin percentage for Year 2 ls: (Round your answer to 1 decimal place.) O 49.3%