Answered: General Accounting Question: If a…

General Accounting Question: If a company's net income is $120,000 and its total sales are $600,000, what is the return on sales (ROS)? A) 15% B) 20% C) 25% D) 30%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

See similar textbooks

Related questions

Q: A company incurred the following costs for a new delivery truck: solve this accounting question

A: Step 1: Define Sales taxThe tax which is imposed by the government authorities on the sale of any…

Q: Managerial accounting

A: Option b: This option is correct because $25000 is used as direct material which will become part of…

Q: Provide correct answer with explanation

A: Explanation of Intangible Assets: Intangible assets are non-physical resources that have economic…

Q: During 2009, Ritter Corporation reported

A: Step 1: Define Accumulated DepreciationThe total amount of depreciation recorded on an asset up…

Q: Need help please this accounting question

A: Step 1:- Define Lease Payment Lease payment means the payment which is paid on the assets for which…

Q: What is the cost of the ending work in process inventory on this general accounting?

A: Explained: We can calculate the ending work in process inventory using the formula of cost of goods…

Q: 2 Using the following product information, calculate the direct materials price variance and the…

A: The actual price (AP) per pound is calculated by dividing the actual cost of direct materials used…

Q: The following selected events and transactions were recorded by Milos County Hospital. 1. Gross…

A: Step 1: a-1. Journal Entries by Proprietary Fund Accounting:Proprietary fund accounting is typically…

Q: Provide answer this general accounting question do fast

A: Step 1: Discounted payback period can be calculated using the discounted (present values) values of…

Q: Hello tutor provide solution for accounting question

A: Step 1: Define Lower of Cost or Market RuleThe lower-of-cost-or-market is applied in financial…

Q: Richard's Events provides catering services, among other services. The company has adopted…

A: First, we need to calculate the cost of each activity for a 25-guest informal party. The costs are…

Q: Get Help with This Question Please solve it

A: To determine the due date and interest on a financial note, we begin by identifying the note's…

Q: Accounting Annapolis company completed job #601 which has a standard of 650

A: Step 1:- Define Variance AnalysisVariance analysis is a financial management technique used to…

Q: Need answer

A: Step 1: Define Realized GainWhen an asset is sold at a higher price than its purchasing price then…

Q: Need answer the general accounting question not use ai

A: Step 1:- Definition of CostCost is a business's monetary expenditure to produce its merchandise,…

Q: Solve this general accounting question not use Ai

A: Step 1: Define Variable CostingIn managerial accounting, variable costing refers to the accounting…

Q: Provide correct answer

A: Step 1: Define DepreciationCapital assets are not charged to the income statement in the year of…

Q: Several years ago, Nicole Company issued bonds with a face value of $1,000,000 for $945,000. As a…

A: Approach to solving the question: For better clarity of the solution, I have attached the Excel…

Q: vne

A: Sales 190,000 Dividend Income 580 Interest Income 700…

Q: Need help

A: Step 1: Define Managerial AccountingManagerial accounting refers to an accounting framework that…

Q: A government acquires as an investment a 30-year U.S. Treasury bond having a face value of $10,000.…

A: The government holds a 30-year U.S. Treasury bond with a face value of $10,000, which it purchased…

Q: Need help general accounting

A: Step 1: Operating cash flow can be calculated by adding depreciation and subtracting the tax paid on…

Q: Provide solution Please tutor

A: Step 1: Understand the Price-Earnings (P/E) RatioThe Price-Earnings (P/E) Ratio is a financial…

Q: Please Provide General Accounting Question Solution

A: Step 1: Define Deficit in Budgeting:A budget deficit can signify a nation's financial stability when…

Q: From a Total Fixed Total Revenues Variable Costs Costs Costs Profit $2,000 $1,400 $2,000 a. ? 1,000…

A: Step 1:Total cost is = fixed cost+ variable cost Profit = total revenue - total cost Requirement…

Q: What is the book value per share?

A: The question requires the determination of the book value per share. Book value per share (BVPS)…

Q: financial Account

A: To calculate the cost of equity for Ding Inc., we can use the Gordon Growth Model (also known as the…

Q: Solve this accounting problem

A: Step 1: Define Gross ProfitGross Profit measures the company's profitability. It shows the…

Q: Need help please this general accounting problem

A: Step 1:- Introduction to the Cash Conversion CycleThe cash conversion cycle is a measure that shows…

Q: On December 31, 2020, Extreme Fitness has adjusted balances of $890,000 in Accounts Receivable and…

Q: Get Answer of this one please use General Accounting Method of solve this Question

A: Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…

Q: Want help

A: Explanation of Accounts Receivable: Accounts receivable refers to the money owed to a company by its…

Q: Answer me

A: Explanation of Cash Conversion Cycle (CCC): The Cash Conversion Cycle (CCC) measures the time it…

Q: Rocky Guide Service provides guided 1 to 5 day hiking tours throughout the Rocky Mountains.…

A: First, we need to calculate the revenue for the tours given from July 1 to July 15. Rocky guided a…

Q: Do not use chatgpt on this accounting question

A: Step 1: Define Straight-Line DepreciationThe depreciation expense on a fixed asset like a piece of…

Q: Ans

A: Operating Margin = Operating Income/Revenue Operating Margin = 30,000/100,000 Operating Margin = 30%

Q: Return on Assets

A: Explanation of Return on Assets (ROA): Return on Assets (ROA) is a financial metric that indicates…

Q: Give me answer

A: c) Issuing bonds. Activities are divided into three primary groups in the Statement of Cash Flows:1.…

Q: Solve this one

A: Step 1: Define Total AssetsTotal assets refers to the sum of all the resources of the business that…

Q: A company budgets production of 4,895 units for June. Each unit uses 2 hours of direct labor at $39…

A: First, we need to calculate the total direct labor hours needed for the production of 4,895 units.…

Q: Get Answer with Correct Option

A: Step 1: Define Gross Profit Percentage:Gross profit percentage is one of the operational performance…

Q: can you please with working show how these are the answers to the question?

A: Step 1: Define Intangible AssetsThe intangible assets are certain rights, know-how, designs, etc.…

Q: Why do you believe that data can be inaccurate?

A: Data is a collection of facts, statistics, or information that are represented in various forms such…

Q: General Accounting

A: Explanation of Net Sales: Net sales represent the total revenue generated by a company from selling…

Q: Right Answer

A: Explanation of Temporary Accounts:Temporary accounts, also known as nominal accounts, are used to…

Q: Hello Tutor Please Provide this answer for this Question

A: Step 1: Define Cost of assetsThe expense incurred by a business organization to acquire assets and…

Q: Want correct answer step by step

A: Explanation of Gross Sales: Gross Sales represent the total revenue a company generates from the…

Q: Need answer please not use ai

A: Step 1: Define DepreciationDepreciation is a non-cash expense charged in the income statement to…

Q: Need help with this accounting question

A: Step 1: Define Gross MarginGross margin refers to the percentage of gross profit earned by an…

Q: This assignment aligns with Outcome 6: Analyze the role of business valuation in mergers and…

A: First, we need to understand the case of the Branson Trucking Company. The company is owned by Dave…

Question

100%

ROS

General Accounting Question: If a company's net income is $120,000 and its total
sales are $600,000, what is the return on sales (ROS)?
A) 15%
B) 20%
C) 25%
D) 30%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.
Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 3. Prepare a common-size income statement for Year 3 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
Profitability Ratios The following data came from the financial statements of Israel Company: Revenue $900,000 Assets $600,000 Expenses 600,000 Liabilities 100,000 Net income 300,000 Average equity 500,000 Required: