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How is the return on sales ratio calculated?
  • a)
    Dividing net income by sales.
  • b)
    Dividing total assets by total liabilities.
  • c)
    Dividing cash by total receivables.
  • d)
    Dividing current assets by current liabilities.
Correct answer is option 'A'. Can you explain this answer?
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How is the return on sales ratio calculated?a)Dividing net income by s...
The return on sales ratio is calculated by dividing net income by sales. This ratio helps business owners examine the portion of each sales dollar that represents profit.
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How is the return on sales ratio calculated?a)Dividing net income by sales.b)Dividing total assets by total liabilities.c)Dividing cash by total receivables.d)Dividing current assets by current liabilities.Correct answer is option 'A'. Can you explain this answer?
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