Selected data from Chering Division's accounting records revealed the following: Sales Average investment Net operating income...

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Selected data from Chering Divisions accounting records revealed the following: Sales Average investment Net operating incom

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Answer 1

Answer #1

return on sales measures how efficiently company is generating profit from its topline sales.

increasing ROS is a good sign for a company.decreasing ROS is a sign of financial trouble for firm.

return on sales is a measure of efficiency as well as company's profitability.

Return on sales = operating profit/sales

=$19,200/$272,640

=7.0%

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Answer 2

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