Mother Nature Supplies Following are selected data from the financial statements of Mother Nature Supplies:

	2018	2017
Accounts receivable	$ 60,000	$ 38,000
Merchandise inventory	12,000	16,000
Total assets	450,000	380,000
Net sales	380,000	270,000
Cost of goods sold	160,000	210,000

35. Refer to the data for Mother Nature Supplies.

Which of the following would result from a horizontal analysis of its balance sheet?

	a.	Accounts receivable increased $22,000, or 57.9%, during 2018.
	b.	Accounts receivable is five times larger than merchandise inventory in 2018.
	c.	Accounts receivable is 13.3% of total assets for 2018.
	d.	Merchandise inventory is 2.7% of total assets for 2018.

36. Refer to the data for Mother Nature Supplies.

Which of the following would not result from a vertical analysis of its balance sheet?

	a.	Accounts receivable increased $22,000, or 36.7%, during 2017.
	b.	Accounts receivable is five times larger than merchandise inventory in 2017.
	c.	Accounts receivable is 13.3% of total assets for 2017.
	d.	Merchandise inventory is 2.7% of total assets for 2018.

37. Which of the following ratios is least useful in evaluating a company's ability to pay its current debts as they become due?

	a.	Current ratio
	b.	Debt-to-equity ratio
	c.	Debt service coverage ratio
	d.	Acid-test ratio