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Below is selected financial information for Panettone, Inc.

Balance Sheet ($ in Millions)					Income Statement ($ in Millions)
Assets		Liabilities and Equity			Sales	4100
Current Assets		Current Liabilities			Cost of Goods Sold	2743
Cash	200	Accounts Payable	300		Administrative Expenses	557
Accounts Receivable	600	Notes Payable	500		Depreciation	251
Inventory	600	Total Current Liabilities	800		Earnings Before Interest and Taxes	549
Total Current Assets	1400	Long-Term Liabilities			Interest Expense	20
		Long-Term Debt	100		Taxable Income	529
Fixed Assets		Total Long-Term Liabilities	100		Taxes	52
Property, Plant and Equip.	2100				Net Income	477
Less Acc. Depreciation	1300	Owners' Equity			Dividends	328
Net Fixed Assets	800	Common Stock ($1 Par)	100		Addition to Retained Earnings	149
		Capital Surplus	200
		Retained Earnings	1000		Other Information
		Total Owners' Equity	1300		No. of Shares Outstanding (Millions)	100
Total Assets	2200	Total Liab. and Equity	2200		Price per Share	20

What is the company's Return on Sales? Use Net Income as your form of "Return."

Select one:

a. 8.27%

b. 11.63%

c. 10.33%

d. 14.01%

Answer & Explanation Solved by verified expert

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