The information shown in the table was taken from the work
sheet of Graff Home Repairs. What is the return on sales for the
period? (Express as a percentage)
Total
Assets Total
Liabilities Capital Withdrawals Revenue Expenses
$34,819 $2,499 $32,000 $1,000 $3,230 $1,910
The return on sales can be calculated using the formula:
Return on Sales (ROS) = (Revenue - Expenses) / Revenue
ROS = ($3,230 - $1,910) / $3,230
ROS = $1,320 / $3,230
ROS ≈ 0.4081
To express as a percentage, multiply by 100:
ROS ≈ 0.4081 * 100
ROS ≈ 40.81%
Therefore, the return on sales for the period is approximately 40.81%.