Use the Following Information for Questions

Multiple Choice

Use the following information for questions:
Review of the financial statements revealed the following for Sonoma Inc.: Sales $1,250,000, Net income $37,500, Total assets $650,000, Long-term debt $750,000, Interest expense $65,000 and Cost of goods sold $775,000.
-Assuming a corporate tax rate of 35%, what is the company profit margin ratio closest to?

A) 12.3%
B) 9.7%
C) 6.4%
D) 4.8%