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

20172016Inventory$54,000$48,000Current assets81,000106,000Total assets392,000336,000Current liabilities27,00036,000Total liabilities102,00088,000Total stockholders equity290,000248,000Preferred stock10,00010,000Net sales784,000697,000Cost of goods sold306,000277,000Net income34,00090,000Tax expense22,00018,000Interest expense12,00012,000Dividends paid to preferred stockholders2,0002,000Dividends paid to common shareholders1,0001,000

Compute the profit margin for 2017.