High School

In an income statement with an EBITDA percentage of 12.0% and an EBITDA of $145,023, what would be the net sales in dollars for the retailer?

A) $1,208,525
B) $1,208,525.25
C) $1,208,524.75
D) $1,208,526

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.

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