Question
Rags to Riches Selected data from the financial statements are provided below: 2020 2019 Accounts Receivable $ 120,000 $ 76,000 Inventory 24,000 32,000 Total Assets
Rags to Riches Selected data from the financial statements are provided below:
|
| 2020 | 2019 |
| Accounts Receivable | $ 120,000 | $ 76,000 |
| Inventory | 24,000 | 32,000 |
| Total Assets | 900,000 | 760,000 |
| Net Sales | 760,000 | 540,000 |
| Cost of Goods Sold | 320,000 | 420,000 |
Refer to Rags to Riches. Which of the following would be found through ratio analysis of the companys financial statements?
| a. | Total assets decreased 18.4% during 2020. | |
| b. | Accounts receivable increased $22,000 during 2020. | |
| c. | Cost of goods sold increased $50,000 or 23.8% in 2020. | |
| d. | The accounts receivable turnover ratio is 7.76 in 2020. |
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Introductory Accounting Finance And Auditing For Lawyers
Authors: Lawrence A. Cunningham
5th Edition
0314912606, 978-0314912602
