QUESTION 1 Selected data from the financial statements of Bloom\'s Garden Centre
ID: 2340757 • Letter: Q
Question
QUESTION 1
Selected data from the financial statements of Bloom's Garden Centre is provided below.
2017
2016
Accounts receivable
$70 000
$46 000
Inventory
10 000
17 000
Total assets
470 000
360 000
Net sales
405 000
263 000
Cost of goods sold
170 000
220 000
Which of the following would result from a horizontal analysis of Bloom's statement of comprehensive income?
Net sales increased $142 000 during 2017, or 52.74% of the 2016 amount
Net sales increased $142 000 during 2017, or 53.99% of the 2016 amount
c The accounts receivable turnover ratio is 7.76 in 2017
d Accounts receivable is 14.89% of total assets in 2017
Hi there, option b and d which is correct?
2017
2016
Accounts receivable
$70 000
$46 000
Inventory
10 000
17 000
Total assets
470 000
360 000
Net sales
405 000
263 000
Cost of goods sold
170 000
220 000
Explanation / Answer
Option B is correct answer :-
Explanation
Answer of d is also correct but it 's not horizontal analysis .
Sales in 2017 $4,05,000 Sales in 2016 $2,63,000 Net Increase in sales $1,42,000 % of Increase in Salees 53.99% ( 142000/263000 X 100)Related Questions
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