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
To find the net sales, we can use the gross profit rate formula. The gross profit is calculated as gross profit rate multiplied by net sales. Given the gross profit rate of 40%, we can set up the equation: Gross Profit = Net Sales × Gross Profit Rate Net Income = Gross Profit - Cost of Goods Sold First, we need to determine gross profit, which can be found by adding net income to cost of goods sold: Gross Profit = Net Income + Cost of Goods Sold = 60,000 + 360,000 = 420,000. Now using the gross profit formula: 420,000 = Net Sales × 0.40 Net Sales = 420,000 / 0.40 = 1,050,000. Thus, US and S's net sales were $1,050,000.
No, when the rate of return decreases, the net present value typically decreases as well. This is because a lower rate of return means that future cash flows are worth less in present value terms, leading to a lower net present value.
Internal rate of return, net present value, accounting rate of return and payback method.