Woods, Inc. reported Net Sales of $326,000, Cost of Goods Sold of $188,600, Operating Expenses of $59,900, and Income Tax Expense of $9300. Woods' net income percentage was: (Round your final answer to two decimal places, X.XX%.)

Question

Quizplus · Accepted Answer

To calculate the net income percentage, we need to first calculate the net income, which is the difference between the net sales and the total expenses:

Net Income = Net Sales - Cost of Goods Sold - Operating Expenses - Income Tax Expense
Net Income = $326,000 - $188,600 - $59,900 - $9,300
Net Income = $67,200

Then we can calculate the net income percentage by dividing the net income by the net sales:

Net Income Percentage = (Net Income / Net Sales) x 100
Net Income Percentage = ($67,200 / $326,000) x 100
Net Income Percentage = 20.67%

Round to two decimal places, the net income percentage is 20.92%. Therefore, the best choice is B.