Selected data from the financial statements of Rags to Riches are provided below: Current Year Prior Year Accounts Receivable $120,000 $ 76,000 Inventory 24,000 32,000 Total Assets 900,000 760,000 Net Sales 760,000 540,000 Cost of Goods Sold 320,000 420,000 Which of the following would result from vertical analysis of the company's income statement? a. The accounts receivable turnover ratio is 7.76 in the current year. b. Gross profit is 57.9% of net sales for the current year. c. Net sales are 84.4% of total assets for the current year. d. Cost of goods sold decreased by $50,000 or 23.8% during
Selected data from the financial statements of Rags to Riches are provided below: Current Year Prior Year Accounts Receivable $120,000 $ 76,000 Inventory 24,000 32,000 Total Assets 900,000 760,000 Net Sales 760,000 540,000 Cost of Goods Sold 320,000 420,000 Which of the following would result from vertical analysis of the company's income statement? a. The accounts receivable turnover ratio is 7.76 in the current year. b. Gross profit is 57.9% of net sales for the current year. c. Net sales are 84.4% of total assets for the current year. d. Cost of goods sold decreased by $50,000 or 23.8% during
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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Selected data from the financial statements of Rags to Riches are provided below: Current Year Prior Year
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