Mother Nature Supplies

Following are selected data from the financial statements ofMother 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

45. Refer to the data for Mother Nature Supplies.

Which of the following would not result from a verticalanalysis of its balance sheet?
a. Accounts receivableincreased $22,000 or 36.7% during 2017.
b. Accounts receivableis five times larger than Merchandise inventory in 2017.
c. Accounts receivableis 13.3% of total assets for 2017.
d. Merchandiseinventory is 2.7% of total assets for 2017.

46. Which of the following ratios is least useful inevaluating a company's ability to pay its current debts as theybecome due?
a. current ratio
b. debt-to-equityratio
c. debt servicecoverage ratio
d. acid-test ratio

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 45 The correct answer is B Accounts rec... View the full answer