Dils Brothers' 2019 financial statements show net income of $5,040 million, sales of $306,932 million, and average total assets of $86,700 million.
How much is Dils Brothers' return on sales for the year?
A) 4.71%
B) 1.64%
C) 10.20%
D) 5.81%

Question

Quizplus · Accepted Answer

Return on sales is calculated as net income divided by sales. For Dils Brothers, it is $5,040 million / $306,932 million = 0.0164 or 1.64%.

Dils Brothers' 2019 Financial Statements Show Net Income of $5,040