Q 12.33: Peachtree Fruit Co. manages inventory closely to prevent obsolescence and maintain freshness. In the pa five years, its current assets have fluctuated with demand and supply of fresh fruits. The following table reproduces selected balance sheet and income statement items: 2020 2019 2018 2017 2016 Accounts receivable 12.8% 12.3% 13.2% 15.1% 13.7% Raw material 8.1% 7.7% 8.6% 9.3% 8.7% inventory Finished goods 4.0% 3.8% 4.0% 4.6% 4.0% inventory Total inventory 6.2% 5.9% 6.5% 7.3% 6.4% 44.4% 43.7% Cost of goods sold 45.7% 44.8% 45.0% Operating expenses 30.8% 30.4% 30.5% Peachtree's common size analysis shows that 30.3% 29.1% A its gross margin as a percentage of sales declined over time due to higher cost of goods sold as a percentage of sales. B its gross margin as a percentage of sales declined over time due to higher cost of goods sold and higher operating expenses, both as a percentage of sales. its gross margin as a percentage of sales increased over time due to higher cost of goods sold but lower operating expenses, both as a percentage of sales. D its gross margin as a percentage of sales increased over time due to lower cost of goods sold and lower operating expenses, both as a percentage of sales