Which of the following is the formula to compute the rate of return on net sales?
A)Net income/average common stockholder's equity
B)Net income/net sales
C)Net income + interest expense,then divide by average total assets
D)Net income/interest expense

Question

Quizplus · Accepted Answer

The formula to compute the rate of return on net sales is net income divided by net sales. This ratio measures the profitability of a company after deducting all its expenses from its net sales.

Which of the Following Is the Formula to Compute the Rate