Refer to the Following Selected Financial Information from Shakley's Incorporated

Multiple Choice

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year 2. $$\begin{array} { | l | r | r | } \hline &{ \text { Year 2 } } & \text { Year 1 } \\\hline \text { Net sales } & \$ 478,500 & \$ 426,250 \\\hline \text { Cost of goods sold } & 276,300 & 250,120 \\\hline \text { Interest expense } & 9,700 & 10,700 \\\hline \text { Net income before tax } & 67,250 & 52,680 \\\hline \text { Net income after tax } & 46,050 & 39,900 \\\hline \text { Total assets } & 317,100 & 288,000 \\\hline \text { Total liabilities } & 181,400 & 167,300 \\\hline \text { Total equity } & 135,700 & 120,700 \\\hline\end{array}$$

A) 14.1%.
B) 33.9%.
C) 11.7%.
D) 9.6%.
E) 16.7%.