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Return on Sales Bomont Cos sales rose 10 over prior year sales of $250,000: however net income, increased by only 2 over the
Inventory Costing Methods-Periodic Method Merritt Company uses the periodic inventory system. The following May data are for
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Answer #1

For last year,

sales = $250000

Net income = $250000 x 22% = $55000

for current year,

sales = $250000 x 110% = $275000

Net income = $55000 x 102% = $56100

therefore,

return on sales ratio = net income/sales

= $56100/$275000

= 20.40%

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