The net sales for James, Inc. were $4,000,000; net income before taxes was $830,000; and gross profit was $1,400,000. The return on sales ratio would be: (Round your answer two decimal places, X.XX%.)
A) 14.25%.
B) 35.00%.
C) 59.29%.
D) 20.75%.

Question

Quizplus · Accepted Answer

The return on sales ratio is calculated as (Net Income Before Taxes / Net Sales) * 100. So, ($830,000 / $4,000,000) * 100 = 20.75%.

The Net Sales for James, Inc