Calculating the Return on Sales

The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows:

Line Item Description	Amount	Percent
Net sales	$8,281,989	100.0%
Less: Cost of goods sold	5,383,293	65.0
Gross margin	$2,898,696	35.0
Less: Operating expenses	1,323,368	16.0
Operating income	$1,575,328	19.0
Less: Interest expense	50,000	0.6
Income before taxes	$1,525,328	18.4
Less: Income taxes (48%)*	732,157	8.8
Net income	$793,171	9.6

* Includes both state and federal taxes.

Line Item Description	Amount
Balance, beginning of period	$1,979,155
Net income	793,171
Total	$2,772,326
Preferred dividends	80,000
Dividends to common stockholders	201,887
Balance, end of period	$2,490,439

Line Item Description	20X1	20X2
Assets
Current assets:
Cash	$2,875,000	$2,580,000
Marketable securities	800,000	700,000
Accounts receivable (net)	939,776	690,000
Inventories	490,000	260,000
Other	93,000	74,261
Total current assets	$5,197,776	$4,304,261
Property and equipment:
Land	$1,575,000	$1,067,315
Building and equipment (net)	1,348,800	1,150,000
Total long-term assets	$2,923,800	$2,217,315
Total assets	$8,121,576	$6,521,576
Liabilities and stockholders' equity
Current liabilities:
Notes payable, short term	$1,170,127	$ 543,641
Accounts payable	420,510	101,500
Current maturity of long-term debt	3,000	2,000
Accrued payables	200,000	57,780
Total current liabilities	$1,793,637	$ 704,921
Long-term liabilities:
Bonds payable, 10%	500,000	500,000
Total liabilities	$2,293,637	$1,204,921
Stockholders' equity:
Preferred stock, $25 par, 8%	$1,000,000	$1,000,000
Common stock, $1.50 par	337,500	337,500
Additional paid-in capital*	2,000,000	2,000,000
Retained earnings	2,490,439	1,979,155
Total stockholders' equity	$5,827,939	$5,316,655
Total liabilities and stockholders' equity	$8,121,576	$6,521,576

* For common stock only.

Required:

Calculate the return on sales. Round the answer to one decimal place. Answer = ___________