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Net income divided by sales is the correct formula for calculating: a. a current ratio. b....

Net income divided by sales is the correct formula for calculating:

a.

a current ratio.
b.

profit margin on sales.
c.

a corporate evaluation.
d.

return on total assets.
e.

a liquidity ratio.
business   Operations-Management   
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Answer #1

1. B. Profit margin on sales

When we consider the formula, we can say that it represents the net profit margin that a company has experienced.

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