7.ACME Inc included the following information in its annual report:

20x2 20x1 20x0

Sales 178,400 162,500 155,500

COGS 115,00 102,500 100,00

Operating Expenses 50,000 50,000 45,000

Net Income 13,400 10,000 10,500

.In a Horizontal common size Income statement for 20x2, where 20x0 is the base year, sales are expressed as :

A. 87.2%

B. 100%

C. 114.7%

D. 148.7%

E. 85.3%

8. use the ACME above information .

In Vertical common size Income statement for 20x2, operating expenses are expressed as :

A. 28%

B. 30.3%

C. 43.8%

D. 100%

E. 11.1%

15. A companys current ratio has been increasing for the past several years. What might this indicate?

A. The company may have used cash to purchase non-current assets like Plant, Property or Equipment

B. Suppliers to the company increased the level of credit they give to the company

C. The company has increased their stock buybacks

D. The company has secured more long-term debt and is holding the debt proceeds in a money market fund

E. The company wrote -off uncollectible receivables