Use the following financial statement information as of the end of each year to answer this question.

2017 2016

Inventory 54,000 48,000

Current Assets81,000106,000

Total Assets 392,000 336,000

Current Liabilities 27,000 36,000

Total Liabilities 102,00088,000

Total Stockholder's equity 290,000 248,000

Preferred Stock 10,000 10,000

Net Sales 784,000 697,000

Cost of goods sold 306,000 277,000

Net income 34,000 90,000

Tax expense22,000 18,000

Interest expense 12,000 12,000

Dividends paid to preferred Stockholders 2,000 2,000

Dividends paid to common shareholders 1,000 1,000

Compute the profit margin for 2017.

4.3%

8.4%

11.7%

8.9%