If Longo's return on sales was 20% in 2012, is the company's profitability improving or declining? Prepare a multi-step income statement for 2013.Note: Do not use negative signs with your answers.LONGO & COMPANYIncome Statement2013Net Revenue$463,500Cost of Goods Sold17,300Gross Profit on Sales46,200Operating Expenses31,000Operating Income15,200Other Expenses1,200Income before Income Taxes14,000Income Tax Expense10,400Net Income3,600Calculate the company's return on sales ratio. Round answer to one decimal place.If Longo's return on sales was 20% in 2012, is the company's profitability improving or declining?Return of sales for 2013=0 % and thus,the company's profitability is declining

The return on sales is calculated as operating income divided by net sales.

Answered: Longo's return on sales was 20% in…

Business

Accounting

Longo's return on sales was 20% in 2012, is the company's profitability improving or declining?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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