Mother Nature Supplies
Following Are Selected Data from the Financial

Multiple Choice

Mother Nature Supplies
Following are selected data from the financial statements of Mother Nature Supplies:
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$\begin{array}{lrr}&2018&2017\\\text { Accounts receivable } & \$ 60,000 & \$ 38,000 \\\text { Merchandise inventory } & 12,000 & 16,000 \\\text { Total assets } & 450,000 & 380,000 \\\text { Net sales } & 380,000 & 270,000 \\\text { Cost of goods sold } & 160,000 & 210,000\end{array}$ ​
-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 2018.
B) Gross profit is 42.1% of net sales for 2018.
C) Cost of goods sold decreased $50,000,or 23.8%,during 2018.
D) Accounts receivable total 13.3% of total assets for 2018.