QUESTION 1

Selected data from the financial statements of Bloom's Garden Centre is provided below.

	2017	2016
Accounts receivable	$70 000	$46 000
Inventory	10 000	17 000
Total assets	470 000	360 000
Net sales	405 000	263 000
Cost of goods sold	170 000	220 000

Which of the following would result from a horizontal analysis of Bloom's statement of comprehensive income?

a		Net sales increased $142 000 during 2017, or 52.74% of the 2016 amount
	b	Net sales increased $142 000 during 2017, or 53.99% of the 2016 amount
		c The accounts receivable turnover ratio is 7.76 in 2017
		d Accounts receivable is 14.89% of total assets in 2017

Hi there, option b and d which is correct?