Bloom's Garden Center Company

question 67

Multiple Choice

Bloom's Garden Center Company
Selected data from the financial statements of Bloom's Garden Center are provided below.

-Refer to the selected data provided for Bloom's Garden Center. Which of the following would result from a vertical analysis of Bloom's income statement?

• A) The accounts receivable turnover ratio is 6.35 in 2012.
• B) Gross profit is 50% of net sales for 2012.
• C) Cost of goods sold increased $20,000 or 11.11% during 2012.
• D) Net sales is 88.9% of total assets for 2012.

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Definitions:

Economic Profits

The net amount left when a business subtracts its full range of costs, explicit and implicit, from its entire revenue.

New Market

An emerging or previously unexplored segment of an industry where a business can expand or introduce its products or services.

Repeated Game

A strategic scenario in game theory where the same game is played several times, allowing players to revise their strategy based on past outcomes.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal given the strategies of all other players in the game, leading to a situation from which no player has an incentive to deviate.