Question

In an income statement where the NIBITDA % is 12.0% and $145,023, calculate the net sales in dollars for the retailer.

a) $1,208,525.00
b) $162,425.76
c) $164,798.86
d) $190,819.74
(Note: The correct answer represents the calculated net sales in dollars based on the given NIBITDA % and amount.)

Answer 1

The net sales for the retailer are calculated by dividing the NIBITDA ($145,023) by the given NIBITDA percentage (12.0%), resulting in net sales of $1,208,525.00.

Step-by-step explanation:

To calculate the net sales for the retailer based on the provided NIBITDA percentage and amount, we can set up an equation using the definition of percentage. NIBITDA % is calculated as the NIBITDA divided by net sales, so if the NIBITDA % is 12.0%, and the NIBITDA amount is $145,023, we can write the equation as: (NIBITDA / Net Sales) = NIBITDA %.
Therefore, ($145,023 / Net Sales) = 0.12. Solving for Net Sales, we multiply both sides by Net Sales and then divide both sides by 0.12 to isolate Net Sales on one side of the equation. Doing so, we find that Net Sales = $145,023 / 0.12, which gives us Net Sales = $1,208,525.

The correct answer is:

a) $1,208,525.00