Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1.Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,340,000 Cost of goods sold 830,000 Gross margin 510,000 Operating expenses 465,143 Net operating income 44,857 Interest expense 9,000 Net income before taxes 35,857 Income taxes (30%) 10,757 Net income$ 25,100 The company's net profit margin percentage for Year 2 is closest to:
A. 3.3%
B. 38.1%
C. 1.9%
D. 2.7%
Answer: C
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