Exhibit 13-1 Xavier Company Reported the Following Income Statement and Balance Sheet

Multiple Choice

Exhibit 13-1
Xavier Company reported the following income statement and balance sheet amounts on December 31,2013.
Inventory and prepaid expenses account for $50,000 of the 2013 current assets.
Average inventory for 2013 is $36,000.
Average net accounts receivable for 2013 is $62,000.
Average one-day sales are $5,900.
There are 12,000 shares of common stock outstanding at the end of 2013.
The market price per share of common stock is $27 at the end of 2013.
The EPS for 2013 is equal to $1.50 per share.
-Refer to Exhibit 13-1.What is the gross margin ratio for 2013 (rounded to the nearest tenth of a percent) ?

A) 10.6
B) 63.5%
C) 27.3%
D) 38.8 %
E) None of the answer choices is correct.