Following Are Selected Data from the Financial Statements of Mother

question 22

Multiple Choice

Following are selected data from the financial statements of Mother Nature Supplies: $\begin{array} { r r }& \underline { \mathbf { 2 0 1 7 } } & \underline { \mathbf { 2 0 1 6 } } \\ \text {Accounts receivable}&\$ 60,000 & \$ 38,000 \\\text {Merchandise inventory}& 12,000 & 16,000 \\ \text {Total assets}&450,000 & 380,000 \\ \text {Net sales}&380,000 & 270,000 \\ \text {Cost of goods sold}&160,000 & 210,000 \end{array}$
-Refer to the data for Mother Nature Supplies. ?
Which of the following would result from a horizontal analysis of its income statement?

• A) Cost of goods sold is 45.5% of net sales for 2017.
• B) Gross profit is 42.1% of net sales for 2017.
• C) Cost of goods sold decreased $50,000 or 23.8% during 2017.
• D) Accounts receivable total 13.3% of total assets for 2017.

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Definitions:

Interfere

Interfere refers to the act of intervening or meddling in the affairs or actions of others, often leading to obstruction or hindrance.

Predatory Behavior

Predatory behavior involves unethical or exploitative tactics to take advantage of someone weaker or in a more vulnerable position.

Intentional Deceit

The act of deliberately misleading or deceiving someone, often for personal gain or to deceive.

Fraudulent Misrepresentation

Occurs when a false statement is knowingly made to induce another party to act, resulting in harm or loss.