The Net Sales for James,Inc

question 52

Multiple Choice

The net sales for James,Inc.were $4,000,000; net income was $510,000; and gross profit was $1,300,000.The return on sales ratio would be:

• A)12.75%.
• B)32.50%.
• C)45.25%.
• D)39.23%.

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Definitions:

Replenish Petty Cash

The process of adding funds to a petty cash fund, typically done when the balance drops to a predefined level, to ensure availability of cash for small, immediate expenses.

Minor Expenditures

Small or insignificant costs that are usually of a non-recurring nature and may not be capitalized.

Discounted Note

A debt instrument sold for less than its face value that will pay the face value at maturity, effectively providing interest to the holder.

Notes Receivable

Financial assets representing amounts owed to a company, promised to be paid back with interest.