Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year 2. Year 2Year 1 Net sales $ 485,000 $ 427,550 Cost of goods sold 277,600? 251,420? Interest expense 11,000? 12,000? Net income before tax 68,550? 53,980? Net income after tax 47,350? 41,200? Total assets 319,700? 295,800? Total liabilities 174,900? 168,600? Total equity 144,800? 127,200?
A. 14.1%.
B. 17.1%.
C. 12.0%.
D. 9.8%.
E. 32.7%.
Answer: D
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