Lander’s Farm Supply Following are selected data from the financial statements of Lander’s Farm Supply:
| 2012 |
2011 |
| 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 Lander’s Farm Supply. Which of the following results would be found through a vertical analysis of the balance sheet or the income statement of Lander’s Farm Supply?
| a. Cost of goods sold increased $50,000 or 23.8% during 2012. |
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| b. Gross profit is 57.9% of net sales for 2012 |
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| c. Total assets increased $70,000 during 2012. |
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| d. Accounts receivable increased $22,000 during 2012. |
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