Using the information below, what is the profit margin for Raynee? (net income/net sales)

The following information pertains to Raynee Company. 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 50,000

Accounts receivable (net) 39,000

Inventory 23,000

Property, plant, and equipment 308,000

Total assets 420,000

Liability and Stockholders Equity

Current liabilities 75,000

Long-term liabilities 120,000

Stockholders equity common 225,000

Total Liabilities and Stockholders Equity 420,000

Income Statement

Sales 145,000

Cost of goods sold 71,000

Gross profit 74,000

Operating Expenses 40,000

Net Income 34,000

Number of shares of common stock 10,000

Market price of common stock $18

Dividends per share .40

	a	23%
	b	26%
	c	20%
	d	31%