A company reports the following account balances at year-end:
| Account | Balance | | Long-term debt | $200,000 | | Cash | 50,000 | | Net sales | 600,000 | | Fixed assets (net) | 320,000 | | Tax expense | 67,500 | | Inventory | 25,000 | | Common Stock | 100,000 | | Interest expense | 20,000 | | Administrative expense | 35,000 | | Retained earnings | 150,000 | | Accounts payable | 65,000 | | Accounts receivable | 120,000 | | Cost of goods sold | 400,000 | | Depreciation expense | 10,000 |
| Additional Information: | | The opening balance of common stock was $100,000 | | The opening balance of retained earnings was $82,500 | | The company had 10,000 common shares outstanding all year | | No dividends were paid during the year |
For the year just ended, the company has a gross margin of
A. 33.3%B. 22.7% C. 27.5% D. 24.0% |
