Use this balance sheet and income statement for the first year of operations for Cane Construction to answer the following question. Use ending balances whenever average balances are required for computing ratios. Cane Construction Balance Sheet December 31, 20x5 Assets Liabilities Current assets $ 14,000 Current liabilities $ 8,000 Investments 6,000 Long-term liabilities 2,000 Property, plant, and equipment 24,000 Total liabilities $ 10,000 Intangible assets 16,000 Owner's Equity Carlton Cane, Capital 50,000 Total liabilities and Total assets $60,000 owner's equity $60,000 Cane Construction Income Statement For the Year Ended December 31, 20x5 Net sales $80,000 Cost of goods sold 32,000 Gross margin $48,000 Operating expenses 26,400 Net income $21,600

22b. The profit margin for Cane Construction is a. 30 percent. b. 75 percent. c. 60 percent. d. 27 percent.