Mother Nature Supplies
Following Are Selected Data from the Financial

question 19

Multiple Choice

Mother Nature Supplies
Following are selected data from the financial statements of Mother Nature Supplies:
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$\begin{array}{lrr}&2018&2017\\\text { Accounts receivable } & \$ 60,000 & \$ 38,000 \\\text { Merchandise inventory } & 12,000 & 16,000 \\\text { Total assets } & 450,000 & 380,000 \\\text { Net sales } & 380,000 & 270,000 \\\text { Cost of goods sold } & 160,000 & 210,000\end{array}$ ​
-Refer to the data for Mother Nature Supplies.
Which of the following results would be found through a vertical analysis of the balance sheet or the income statement of Mother Nature Supplies?

• A)Accounts receivable increased $22,000 during 2018.
• B)Total assets increased $70,000 during 2018.
• C)Cost of goods sold increased $50,000,or 23.8%,during 2018.
• D)Gross profit is 57.9% of net sales for 2018.

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Definitions:

Trade Flow

The movement of goods and services across borders, reflecting the import and export activities between countries.

Dollars

A unit of currency used in the United States and other countries, symbolized by $.

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The price of one country's currency expressed in another country's currency, facilitating international trade and finance.

Argentine Peso

The official currency of Argentina, utilized in financial transactions within the country.