Please refer to the following data: Which of the following statements is a valid

Question

Please refer to the following data: Which of the following statements is a valid conclusion based on this data? Profitability in 2014 took a dive as operating expenses increased by 30.8%. Profitability in 2014 improved greatly, as net income increased significantly as a percentage of sales. Net income in 2014 increased 12.6% over the prior year. Net income in 2014 went down because gross profit as a percentage of sales declined over the 2-year period. Oglethorpe Company reports the following Information from the vertical analysis of their balance sheet: Current assets: 23.5% in 2014 23.9% in 2013 Which of the following statements could be logically concluded from dm above data? The company's current ration declined. The company's current assets declined in proportion to its total assets. The company's ability to pay current liabilities declined. The company's total current assets declined by 0.4%

Explanation / Answer

19) Profitability in 2014 improved greatly as net income increased increased significantly as % of sales. In 2013 it was 8.5% and in 2014 it was 12.6%

20) The companys current assets declined in proportion to its total assets since the current assets as % of total assets declined from 23.9% in 2013 to 23.5% in 2014.

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