Please Refer to the Following Trend Analysis of Pathways Company

question 60

Multiple Choice

Please refer to the following trend analysis of Pathways Company: Which of the following is a correct conclusion from the above analysis?

• A)Net sales in 2014 were equal 102.3% of net sales for the previous year.
• B)Net sales in 2014 were up 2.3% over the previous year.
• C)Net sales in 2014 were 2.3% higher than 2010 net sales.
• D)Net sales in 2014 were down 90.5% from year 2010.

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Definitions:

Lower Of Cost

An accounting principle requiring that inventory is recorded at the lower of its historical cost or current market value.

Market Value

The prevailing market rate at which a commodity or service is traded.

Retail Inventory Method

An accounting technique used to estimate inventory value by converting retail prices to cost prices.

Cost To Retail Ratio

A method to estimate the value of ending inventory and cost of goods sold based on the ratio of cost to the retail price of goods.