Tootsie Roll Industries Inc. Income Statement As of December 31, Yea

Tootsie Roll Industries Inc.
Income Statement

As of December 31, Year 6 ($000s)
Year 6
Net sales 194,299
COGS 103,205
SG&A 54,329
EBIT 36,765
Interest expense 612
Other income (expenses), net 966
Income before income taxes 37,119
Income taxes 14,563
Net Income 22,556
Total Cash dividends 12,316
Shares Outstanding 9,645
Average price per share (4th Q) $36.50

Selected Financial Ratios
Year 6 Industry Avg.
Net Profit Margin 8.2%
Total Asset Turnover 1.64
ROA 13.4%
Equity Multiplier 1.42
ROE 19%

Referring to the financial statements for Tootsie Roll, what is the difference between the Industry and Tootsie for the net profit margin? (Tootsie – Industry)
A) 3.1%
B) 3.4%
C) 5.4%
D) 8.2%
E) 11.6%

ANSWER

B