Question

Data from the financial statements of Creativity Crafts and Fun Projects, Inc. are presented below (in millions):

	Creativity Crafts	Fun Projects, Inc.
Total liabilities, 2019	$47,940	$38,190
Total liabilities, 2018	54,160	45,070
Total assets, 2019	87,830	64,530
Total assets, 2018	82,350	61,610
Net sales, 2019	230,200	122,550
Net income, 2019	4,200	2,360

To the nearest hundredth of a percent, what is the 2019 return on sales ratio for Creativity Crafts?

Select one:

A. Not enough information provided

B. 1.83%

C. 0.86%

D. 1.09%

Answer 1

Return on sales = Net income /Sales revenue = 4,200 / 230,200 = 1.83% Option B is the answer
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