Rate of Return on Net Sales = (Net Income) / (Total Sales)
Total sales - cash sales - sales return
sales+sales return=net sales
return on sales
ROS= NET PROFIT/ SALES
Rate of Return on Net Sales = (Net Income) / (Total Sales)
Return on sales = 814100 / 9275000 = 8.777 %
Total sales - cash sales - sales return
sales+sales return=net sales
no
return on sales
ROS= NET PROFIT/ SALES
Return on equity is the rate of returns you earned on your equity investments Return on net worth is the rate at which your entire property is growing (Your net worth is the sum of all your assets - all your liabilities)
--> another term for Statement of Earnings is Income Statement --> in income statement, you deduct the Sales Return & Allowances from the Gross Sales to come up with Net Sales --> in presentation purposes, usually it is only the Net Sales account that is shown
Internal rate of return, net present value, accounting rate of return and payback method.
by using the Net present value calculations.
Average Rate of Return is calculated by using the formula: (Net return per year / initial investment) x 100 Average Rate of Return is calculated by using the formula: (Net return per year / initial investment) x 100