Sunshine Farm Supply

Following are selected data from the financial statements of Sunshine Farm Supply:

	2016	2015
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

Refer to the data for Sunshine Farm Supply.

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

A.Accounts receivable increased $22,000 or 57.9% during 2016.

B.Accounts receivable is five times larger than Merchandise inventory in 2016.

C.Accounts receivable is 13.3% of total assets for 2016.

D.Merchandise inventory is 2.7% of total assets for 2016.

Refer to the data for Sunshine Farm Supply.

Which of the following would result from a horizontal analysis of its income statement?

A.Cost of goods sold is 45.5% of net sales for 2016.

B.Gross profit is 42.1% of net sales for 2016.

C.Cost of goods sold decreased $50,000 or 23.8% during 2016.

D.Accounts receivable total 13.3% of total assets for 2016.

Refer to the data for Sunshine Farm Supply.

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 2016.

B.Accounts receivable is five times larger than Merchandise inventory in 2016.

C.Accounts receivable is 13.3% of total assets for 2016.

D.Merchandise inventory is 2.7% of total assets for 2016.

Refer to the data for Sunshine Farm Supply.

Which of the following would result from a vertical analysis of its income statement?

A.Accounts receivable increased $22,000 or 57.9% during 2016.

B.Gross profit is 57.9% of net sales for 2016.

C.Cost of goods sold increased $50,000 or 23.8% during 2016.

D.Net sales increased $110,000 or 28.9% during 2016.

Refer to the data for Sunshine Farm Supply.

Which of the following results would be found through a vertical analysis of the balance sheet or the income statement of Sunshine Farm Supply?

A.Accounts receivable increased $22,000 during 2016.

B.Total assets increased $70,000 during 2016.

C.Cost of goods sold increased $50,000 or 23.8% during 2016.

D.Gross profit is 57.9% of net sales for 2016.