Bloom's Garden Center Company

question 22

Multiple Choice

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

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

• A) The accounts receivable turnover ratio is 7.56 in 2012.
• B) Gross profit is 46.67% of net sales for 2012.
• C) Cost of goods sold decreased by $50,000 or 17.24% during 2012.
• D) Net sales is 84.91% of total assets for 2012.

Calculate total costs with additional fees and commissions.

Assess financial outcomes for third-party service commissions.

Apply percentage-based calculations to real-world problems.

Understand the importance of persuasive recommendations in various business reports and proposals.

---

Definitions:

Punitive Damages

Financial compensation awarded in lawsuits as a punishment to the defendant, over and above actual damages.

Deterrent

Something that discourages or prevents a person or action through fear of consequences or negative outcomes.

Consequential Damages

Refers to secondary effects or financial losses that result indirectly from a breach of contract.

Lost Profits

Potential earnings that were not realized due to the wrongful acts of another party, frequently sought as damages in legal disputes.