Zeman Company has the following data: $\begin{array}{llll}
&2X13&2X12&2X11\
\text { Sales (all credit sales) } & \$ 800 & \$ 740 & \$ 675 \
\text { Less Cost of Goods Sold } & \underline{525} & \underline{490} &450\
\text { Gross Profit }& \$ 275 &\$ 250 &\$ 225\
\end{array}$ $\begin{array} { l l l l }
\text { Operating Profit } &&&& \$ 125 & \$ 110 & \$ 104 \
\text { Net Income } &&&& \$ 4 & \$56 & \$52
\end{array}$
What is the return on sales for Zeman Company in 2X13? Has the return on sales improved or not improved since 2X12?
A)8.0%,improved
B)8.0%,not improved
C)14.4%,improved
D)34.4%,improved
E)34.4%,not improved

Question

Zeman Company has the following data: $\begin{array}{llll}
&2X13&2X12&2X11\
\text { Sales (all credit sales) } & \$ 800 & \$ 740 & \$ 675 \
\text { Less Cost of Goods Sold } & \underline{525} & \underline{490} &450\
\text { Gross Profit }& \$ 275 &\$ 250 &\$ 225\
\end{array}$ $\begin{array} { l l l l } 
\text { Operating Profit } &&&& \$ 125 & \$ 110 & \$ 104 \
\text { Net Income } &&&& \$ 4 & \$56 & \$52
\end{array}$ 
What is the return on sales for Zeman Company in 2X13? Has the return on sales improved or not improved since 2X12?
A)8.0%,improved
B)8.0%,not improved
C)14.4%,improved
D)34.4%,improved
E)34.4%,not improved

Quizplus · Accepted Answer

Return on sales = Gross profit/Sales= 275/800= 0.344 or 34.4%The return on sales has improved since 2X12, as it was 250/740 = 0.338 or 33.8% in 2X12.

Zeman Company Has the Following Data Operating Profit $125$110$104 Net Income $4$56$52\begin{array} { l l l l } \text { Operating Profit } &&&& \$ 125 & \$ 110 & \$ 104 \\\text { Net Income } &&&& \$ 4 & \$56 & \$52\end{array} Operating Profit Net Income ​​​​$125$4​$110$56​$104$52​

Zeman Company Has the Following Data $\begin{array} { l l l l } \text { Operating Profit } &&&& \$ 125 & \$ 110 & \$ 104 \\\text { Net Income } &&&& \$ 4 & \$56 & \$52\end{array}$