Calculate net income (after tax) to the net sales. (Round your answers to the ne

Question

Calculate net income (after tax) to the net sales. (Round your answers to the nearest hundredth.)

LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2016 and 2017 2017 2016 Gross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200

Explanation / Answer

2017 2016 Net Income (Aftet Tax) 990 1200 Net Sales 18000   14900 net income (after tax) to the net sales 5.50% 8.05% Formula (Net Income ÷ Net sales) x 100

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