Sunshine Farm Supply Following Are Selected Data from the Financial

question 54

Multiple Choice

Sunshine Farm Supply Following are selected data from the financial statements of Sunshine Farm Supply:
Refer to the data for Sunshine Farm Supply.
Which of the following results would be found through a vertical analysis of the balance sheet or the income statement of Sunshine Farm Supply?

• A)Accounts receivable increased $22,000 during 2012.
• B)Total assets increased $70,000 during 2012.
• C)Cost of goods sold increased $50,000 or 23.8% during 2012.
• D)Gross profit is 57.9% of net sales for 2012

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Definitions:

Normal Good

A type of good for which demand increases as the consumer's income increases and decreases as the consumer's income decreases.

Temporary Weather Fluctuations

Short-term changes in weather patterns, which may impact various aspects of daily life and economic activities.

Car Transactions

Refers to the buying, selling, or trading of automobiles between parties.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.