The Moose Hardware Company had net income of $60,000 and net sales of $470,000. Compute the relationship of net income to net sales. Express your answer as a percentage. (Round answer to two decimal places.)

Relationship of Net Income to Net Sales

A profitability metric that measures the percentage of net sales that ultimately becomes net income, indicating the efficiency of a company in generating profit from sales.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Net Sales

This refers to the revenue generated from sales after deducting returns, allowances for damaged or missing goods, and discounts.