Question: A company's common-size statement lists two years, 20X3 and 20X4. In 20X3, the inventories line was five percent, and in 20X4 the inventories line was

A company's common-size statement lists two years, 20X3 and 20X4. In 20X3, the inventories line was five percent, and in 20X4 the inventories line was seven percent. Which one of the following could an underwriter infer from this information? Select one: A. Percent of inventories changed with inflation B. The percentage of inventories to total assets increased C. Inventories fell by two percent D. Inventories increased by two percent

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