Question - Selected data from the financial statements of Bloom's Garden Centre is provided below.
2014 2013
Accounts receivable $70 000 $46 000
Inventory 10 000 17 000
Total assets 470 000 360 000
Net sales 380 000 270 000
Cost of goods sold 170 000 220 000
Which of the following would result from a vertical analysis of Bloom's statement of comprehensive income?
Gross profit is 55.3% of net sales for 2014
Net sales are 84.4% of total assets for 2014
Cost of goods sold decreased $50 000 or 22.7% during 2014
The accounts receivable turnover ratio is 7.76 in 2014