Selected data from the financial statements of Rags to Riches are provided below: Current Year Prior...

Transcribed Image Text:

Selected data from the financial statements of Rags to Riches are provided below: Current Year Prior Year Accounts Receivable Inventory Total Assets Net Sales Cost of Goods Sold $120,000 $76,000 24,000 32,000 900,000 760,000 760,000 540,000 320,000 420,000 Which of the following would result from horizontal analysis of the company's income statement? a. Cost of goods sold decreased by 23.8% from the prior year to the current year. Ob. Inventory decreased by $4,000 or 20% during the prior year. Oc. Cost of goods sold is 42.1% of net sales for the current year. Od. Gross profit is 57.9% of net sales for the current year. Selected data from the financial statements of Rags to Riches are provided below: Current Year Prior Year Accounts Receivable Inventory Total Assets Net Sales Cost of Goods Sold $120,000 $76,000 24,000 32,000 900,000 760,000 760,000 540,000 320,000 420,000 Which of the following would result from horizontal analysis of the company's income statement? a. Cost of goods sold decreased by 23.8% from the prior year to the current year. Ob. Inventory decreased by $4,000 or 20% during the prior year. Oc. Cost of goods sold is 42.1% of net sales for the current year. Od. Gross profit is 57.9% of net sales for the current year.