Martinez Corporation reported Net sales of 775000 and Net in

Martinez Corporation reported Net sales of $775,000 and Net income of $132,000. The Profit margin is: O 82.97%. 5.87%. 0 5870 %. 1.70%. O 17.03%.

1.Profit margin=Net income/Net sales

=(132000/775000)

=17.03%

COGS for 2014=100%

COGS for 2015 using 2014 as base=(151000-130490)/130490=115.7%

Hence the correct option is 115.7% for 2015 and 100% for 2014.

Average inventory=(Beginning inventory+Ending inventory)/2

=(39200+47300)/2

=$43250.

Debt to equity ratio=Debt/equity

which is equal to

=(0.9/0.8)

=1.125