Answer :
Final answer:
To find the net sales for a retailer using the EBITDA percentage (12.0%) and EBITDA value ($145,023), divide the EBITDA value by the EBITDA percentage converted to decimal form (0.12), resulting in a net sales total of $1,208,525.
Explanation:
To calculate the net sales for a retailer when given the EBITDA percentage and the EBITDA value, we can use the formula:
Net Sales = EBITDA / (EBITDA Percentage / 100)
In this case, the EBITDA value is $145,023, and the EBITDA percentage is 12.0%. Applying the formula:
Net Sales = $145,023 / (12.0% / 100) = $145,023 / 0.12 = $1,208,525
The correct answer is A) $1,208,525.