Flingers Inc What Is Flingers' Profit Margin?
A)5%
B)16%
C)2%
D)4

Flingers Inc. reveals the following information in their annual report for FY 2018 $$\begin{array}{l}\text { Earnings and Expenses }\\\begin{array} { | l | c | } \hline \text { Sales } & \$ 10,000,000 \\\hline \text { Cost of goods sold } & \$ 5,000,000 \\\hline \text { Pretaxearnings } & \$ 500,000 \\\hline & \\\hline \text { Selected Balance Sheet Items } & \\\hline \text { Merchandise inventory } & \$ 80,000 \\\hline \text { Total assets } & \$ 2,000,000 \\\hline\end{array}\end{array}$$ What is Flingers' profit margin?

A) 5%
B) 16%
C) 2%
D) 4%