14. In performing a vertical analysis, the base for prepaid expenses is a) total current assets. b) total assets. c) total liabilities d) prepaid expenses in a previous year. Use the following information for questions 15-16. Accounts receivable $ 2,500 Cost of goods sold. 200,000 Net income 50,000 Sales........ 450,000 Total assets. 250,000 Total current assets 25,000 15. In performing a vertical analysis, the percentage for accounts receivable is a) 0.5% b) 1.0% c) 5.0% d) 10.0% 16. In performing a vertical analysis, the percentage for cost of goods sold is a) 4.4% b) 40.0% c) 44.4% d) 400.0% 17. Horizontal analysis a) is also called trend analysis. b) can be carried out on statement of financial position data but not on statement of income data. c) is a technique for evaluating a financial statement item in the current year with other items in the current year. d) uses the base year as the most current year being examined