The following is a summary of information presented on the financial statements of a company on December 31, 2019. Account 2019 2018 Net Sales Revenue $607,000 $502,000 Cost of Goods Sold 450,000 406,000 Gross Profit 157,000 96,000 Selling Expenses 54,000 52,000 Net Income Before Income Tax Expense 103,000 44,000 Income Tax Expense 38,000 24,000 Net Income $65,000 $20,000 With respect to net sales revenue, a horizontal analysis reveals ________. A. a 240.62% decrease in net sales revenue B. a 20.92% increase in net sales revenue C. a $44,000 increase in net sales revenue D. a decrease of $44,000 in net sales revenue

2 National, Inc. provides the following data:

Cash	$45,000	$25,000
Accounts Receivable, Net	138,000	62,000
Merchandise Inventory	70,000	50,000
Property, Plant, and Equipment, Net	200,000	120,000
Total Assets	$453,000	$257,000

For the year ending December 31, 2019:

Net Credit Sales	$250,000
Cost of Goods Sold	(110,000)
Gross Profit	$140,000

Calculate the accounts receivable turnover ratio for 2019. (Round your answer to two decimal places.)

A.

2.50 times

B.

3.28 times

C.

5.00 times

D.

1.81 times

3

The financial statements of Trenton Office Supply include the following items:

	2019	2018
Cash	$ 42 comma 500$42,500	$ 47 comma 000$47,000
Shortminusterm Investments	27 comma 00027,000	18 comma 00018,000
Net Accounts Receivable	96 comma 00096,000	101 comma 000101,000
Merchandise Inventory	135 comma 000135,000	120 comma 000120,000
Total Assets	526 comma 000526,000	544 comma 000544,000
Total Current Liabilities	252 comma 000252,000	239 comma 000239,000
Longminusterm Note Payable	61 comma 00061,000	53 comma 00053,000

What is the 2019 current ratio? (Round your answer to two decimal places.)

A.1.19

B.0.84

C.1.68

4

A business makes a payment of $1,400 on a note payable. Which of the following journal entries would be recorded?

A.

Cash is credited and Financing Expense is debited for $1,400.

B.

Cash is debited and Financing Revenue is credited for $1,400.

C.

Cash is credited and Notes Payable is debited for $1,400.

D.

Notes Payable is credited and Cash is debited for $1,400.

D.0.57