Pondexter Company, a large retail furniture store, is under investigation for price fixing. Customers in some isolated communities are complaining that Pondexter is setting its prices in its stores in these communities substantially higher than the prices for similar items in stores located closer to large population centers. According to these complaints, Pondexter can get away with this because there are few competitors in these isolated communities. To see whether Pondexter is earning above-normal profits, the judge in the case has ordered an investigation into Pondexters finances. Specifically, the judge wants to see Pondexters income statement. The judge has stated that she intends to compare Pondexters return on sales with the corresponding percentages for similar companies. What income statement numbers are used in computing RETURN ON SALES?

Accounts Receivable

Retained Earnings and Sales

Net Income and Sales

Capital Stock and Sales

Cash and Sales