The financial statements of Black Barn Company are given below
-Refer to the financial statements of Black Barn Company.The firm's return on sales ratio for 2009 is _____ percent.

Question

The financial statements of Black Barn Company are given below 
-Refer to the financial statements of Black Barn Company.The firm's return on sales ratio for 2009 is _____ percent.

Quizplus · Accepted Answer

The return on sales ratio is calculated by dividing net income by sales revenue. For 2009, Black Barn Company's net income was $1,240,000 and its sales revenue was $8,000,000. Therefore, the return on sales ratio for 2009 is $1,240,000 / $8,000,000 = 15.5%.

The Financial Statements of Black Barn Company Are Given Below