If a company has $115,000 net sales, $65,000 in gross profit, and $12,000 in net income, the net income percentage would be approximately 57%.

Question

Quizplus · Accepted Answer

The net income percentage is calculated by dividing net income by net sales and multiplying by 100. 
Net income percentage = (Net income / Net sales) x 100 
In this case, 
Net income percentage = (12,000 / 115,000) x 100 
Net income percentage = 10.43% 
Therefore, the statement is false.

If a Company Has $115,000 Net Sales, $65,000 in Gross