Consider the following financial data for Larrys Computer Stores:

Statement of Financial Position as of December 31, 2012

Cash & equivalents	$	94,500		Accounts payable	$	122,500
Receivables		202,500		Short-term bank note		162,500
Inventories		364,000		Accrued wages and taxes		110,500
Total current assets	$	661,000		Total short-term liab.	$	395,500
				Long-term debt		418,000
Net fixed assets		468,500		Common equity		316,000
Total assets	$	1,129,500		Total liabilities & equity	$	1,129,500

Statement of Earnings for the Year Ended December 31, 2012

Sales revenue	$	450,000
Cost of merchandise sold		250,000
Gross profit	$	200,000
Operating expenses		97,500
Earnings before interest and taxes (EBIT)	$	102,500
Interest expense		46,500
Earnings before taxes (EBT)	$	56,000
Federal and state income taxes (45 percent)		25,200
Net earnings	$	30,800

Calculate Larrys net profit margin.

	a.	2.73%
	b.	9.75%
	c.	4.66%
	d.	15.40%
	e.	6.84%