Following are selected data from the financial statements of Mother Nature Supplies: 2017 2016 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 Mother Nature Supplies. 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 2017.
b. Gross profit is 42.1% of net sales for 2017.
c. Cost of goods sold decreased $50,000 or 23.8% during 2017.
d. Accounts receivable total 13.3% of total assets for 2017.
c
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