Rags to Riches Selected Data from the Financial Statements Are

question 48

Multiple Choice

Rags to Riches Selected data from the financial statements are provided below:
$\begin{array}{ll}& \underline{ 2015 } & \underline{ 2014 } \\ \text { Accounts Receivable } &\$ 120,000 & \$ 76,000 \\ \text { Inventory } &24,000 & 32,000 \\ \text {Total Assets } &900,000 & 760,000 \\ \text { Net Sales } &760,000 & 540,000 \\ \text { Cost of Goods Sold } &320,000 & 420,000\end{array}$
-Refer to Rags to Riches.Which of the following would result from a vertical analysis of the company's income statement?

• A)The accounts receivable turnover ratio is 7.76 in 2015.
• B)Gross profit is 57.9% of net sales for 2015.
• C)Cost of goods sold decreased $50,000 or 23.8% during 2015.
• D)Net sales is 84.4% of total assets for 2015.

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Definitions:

Divine Retribution

The concept of a supernatural force, usually a deity, exacting justice by rewarding the good and punishing the wicked according to moral criteria.

English Settlers

English settlers were individuals or groups from England who migrated to various parts of the world, notably to the Americas during the 17th and 18th centuries, to establish colonies.

Prosperous

Characterized by financial success, wealth, or good fortune, often reflecting a period of economic growth or individual financial health.

Large Family Units

the social structure where extended families, including multiple generations, live together or maintain close ties.