Rags to RichesSelected data from the financial statements are provided below:
 2020
2019
Accounts Receivable$  120,000
$  76,000
Inventory24,000
32,000
Total Assets900,000
760,000
Net Sales760,000
540,000
Cost of Goods Sold320,000
420,000
Refer to Rags to Riches. Which of the following would result from a horizontal analysis of the company's balance sheet?

A. Accounts receivable increased $22,000 or 57.9% during 2020.
B. Accounts receivable is five times larger than inventory in 2020.
C. Accounts receivable is 13.3% of total assets in 2020.
D. The accounts receivable turnover ratio is 7.76 in 2020.


Answer: A

Business

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