The Following Information Pertains to Sampson Company What Is the Profit Margin for Sampson?
A)115%
B)28

question 93

Multiple Choice

The following information pertains to Sampson Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & {310,000} \\\quad \text { Total Assets } & \$ 400,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 50,000 \\\text { Long-term liabilities } & 90,000 \\\text { Stockholders' equity-common } & 260,000 \\\text { Total Liabilities and Stockholders' Equity }&\$400,000\\\\\text { Income Statement }\\\text { Sales } & \$ 300,000 \\\text { Cost of goods sold } & 66,000 \\\text { Gross profit } & 234,000 \\\text { Operating expenses } & 30,000 \\\text { Net income }&\$204,000\\\\\text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Dividends per share } & 50\end{array}$ What is the profit margin for Sampson?

• A)115%
• B)28.2%
• C)68%
• D)51%

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