Selected Data from the Financial Statements Are Provided in the Following

question 31

Multiple Choice

Selected data from the financial statements are provided in the following table:
$\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Accounts receivable } & \$ 120,000 & \$ 76,000 \\\text { Inventory } & 24,000 & 32,000 \\\text { Total assets } & 900,000 & 760,000 \\\text { Net sales } & 760,000 & 540,000 \\\text { Cost of goods sold } & 320,000 & 420,000\end{array}$
-Refer to the figure Rags to Riches.Which of the following would result from a horizontal analysis of the company's income statement?

• A) Net sales in Year 2 increased to 140.74% of the Year 1 amount.
• B) Gross profit is 57.9% of net sales for Year 2.
• C) Accounts receivable is 13.3% of total assets in Year 2.
• D) The accounts receivable turnover ratio is 7.76 in Year 2.

Understand the principle of utility maximization for consumers.

Analyze the implications of marginal utility and pricing in consumer choice.

Apply the concept of the marginal utility-to-price ratio in maximizing utility.

Understand how budget constraints affect consumer choices.

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Definitions:

Konrad Lorenz

An Austrian zoologist known for his foundational work in the field of ethology and for his study of animal behavior.

Critical Period

A specific time during development when a particular event has its greatest consequences and the presence of certain kinds of environmental stimuli is necessary for development to proceed normally.

Innate Tendency

An natural or instinctual inclination or propensity in living organisms towards certain behaviors, reactions or developments.

Goslings

Young geese that have not yet reached maturity.