Mother Nature Supplies
Following Are Selected Data from the Financial

question 28

Multiple Choice

Mother Nature Supplies
Following are selected data from the financial statements of Mother Nature Supplies:
​
$\begin{array}{lrr}&2018&2017\\\text { Accounts receivable } & \$ 60,000 & \$ 38,000 \\\text { Merchandise inventory } & 12,000 & 16,000 \\\text { Total assets } & 450,000 & 380,000 \\\text { Net sales } & 380,000 & 270,000 \\\text { Cost of goods sold } & 160,000 & 210,000\end{array}$ ​
-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 2018.
• B)Gross profit is 42.1% of net sales for 2018.
• C)Cost of goods sold decreased $50,000,or 23.8%,during 2018.
• D)Accounts receivable total 13.3% of total assets for 2018.

---

Definitions:

Majority Black School

An educational institution where the majority of enrolled students are of Black or African American descent.

Communication Style

The characteristic way in which individuals express themselves verbally and nonverbally when interacting with others.

Signifying

A term often used in African American literary theory that refers to a technique of indirect representation and rhetorical strategy, characterized by veiled messages and doublespeak.

Indirect Questioning

A technique in research or conversation that avoids direct questions to elicit more honest or informative responses.