1 answer

15. Account Current year Prior year Net sales $219,000 $180,000 Cost of Goods Sold $125,000 $110,000...

Question:

15.
Account Current year Prior year Net sales $219,000 $180,000 Cost of Goods Sold $125,000 $110,000 Gross Profit $94,000 $70,000
Account Current year Prior year Net sales $219,000 $180,000 Cost of Goods Sold $125,000 $110,000 Gross Profit $94,000 $70,000 Income from operations $32,000 $30,000 Interest expense $2,000 $7,000 Net income $25,000 $18,000 Also known: Total assets in the prior year were $325,500, and in the current year are $345,500. What is the prior year's return on sales? 10.0% 14.6% 21.7% 11.4%

Answers

Return on sales ( prior year ):

= Net income / Net sales. * 100

= ($18,000 / $180,000) * 100

= 10% .

.

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