-The return-on-sales ratio for 2017 is:
A) 5.0 percent
B) 19.3 percent
C) 5.3 percent
D) 9.5 percent

Name: -The return-on-sales ratio for 2017 is: A) 5.0 percent B) 19.3 percent C) 5.3 percent D) 9.5 percent
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Question

-The return-on-sales ratio for 2017 is:
A) 5.0 percent 
B) 19.3 percent 
C) 5.3 percent 
D) 9.5 percent

Quizplus · Accepted Answer

Return on sales = (Net income + After-tax interest expense) / Sales
= (Net income + [Interest expense x (1- 0.34)]) / Sales
= ($10,966 + [$196 x (1 - 0.34)]) / $57,534
= ($10,966 + $129) / $57,534
= 19.284% = 19.3%

-The Return-On-Sales Ratio for 2017 Is