Venus Clothing Company specializes in selling apparel for special occasions. In

Question

Venus Clothing Company specializes in selling apparel for special occasions. In 2012 and 2013, Venus' account balances were as follows: (in above table)

QUESTIONS TO BE ANSWERED (PLEASE EXPLAIN -show work- AND GIVE ANY CALCULATIONS)

1. CALCULATE THE CHANGE IN EACH OF THE VENUS' ACCOUNTS FROM 2012 TO 2013

2. INDICATE WHAT HAPPENED FROM 2012 TO 2013 TO ACCOUNTS RECEIVABLE AND MERCHANDISE INVENTORY AS A PERCENTAGE OF TOTAL ASSETS. INDICATE WHAT HAPPENED FROM 2012 TO 2013 TO COST OF GOODS SOLD AS A PERCENTAGE OF NET SALES.

2013 2012 Accounts Receivable 45,000 32,000 Merchandise Inventory 9,000 11,000 Total Assets 375,000 340,000 Net Sales 330,000 260,000 Cost of Goods Sold 145,000 185,000

Explanation / Answer

1. CALCULATE THE CHANGE IN EACH OF THE VENUS' ACCOUNTS FROM 2012 TO 2013

2.(a) INDICATE WHAT HAPPENED FROM 2012 TO 2013 TO ACCOUNTS RECEIVABLE AND MERCHANDISE INVENTORY AS A PERCENTAGE OF TOTAL ASSETS.

2.(b) INDICATE WHAT HAPPENED FROM 2012 TO 2013 TO COST OF GOODS SOLD AS A PERCENTAGE OF NET SALES.

Statement of change in accounts Change Particulars 2013 2012 $ % Accounts Receivable 45,000 32,000 13,000 40.63 Merchandise Inventory 9,000 11,000 -2,000 -18.18 Total Assets 375,000 340,000 35,000 10.29 Net Sales 330,000 260,000 70,000 26.92 Cost of Goods Sold 145,000 185,000 -40,000 -21.62

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