Financial Accounting My Subscriptions / Courses / ACC211:Session B-Principles of

Question

Financial Accounting My Subscriptions / Courses / ACC211:Session B-Principles of Financial Accounting / Chapter 4 / Homework-Wee Chapter 1 Chapter 2 Chapter 3 Chapter 4 CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 8 Not complete Points out of 1.00 Flag question Return on sales Kuyu Co's sales rose 10% over prior year sales of $100,000; however net income, increased by only 1% over the prior year's net income. If Kuyu's prior year return on sales ratio was 11%, what is the current year return on sales ratio? (Round answer to one decimal place.) Chapter 5 hapter 6 apter 7 Current Year Return on Sales Ratio0 apter 8 Check pter 9 pter 10 Next page Previous page ter 11 Save Answers er 12

Explanation / Answer

Prior year sales = 100000

current year sales = 100000*110% = 110000

Prior year net income = 100000*10% = 10000

Current year net income = 10000*101%=10100

Current year return on sales ratio = Current year net income*100/current year sales

                                                   = 10100*100/110000

Current year return on sales ratio = 9.2%

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