Selected data from the financial statements are provided below:

-Refer to Rags to Riches. Which of the following would be found through ratio analysis of the company's financial statements?
A)The accounts receivable turnover ratio is 7.76 in 2020.
B)Cost of goods sold increased $50,000 or 23.8% in 2020.
C)Accounts receivable increased $22,000 during 2020.
D)Total assets decreased 18.4% during 2020.

Question

Selected data from the financial statements are provided below:
 
-Refer to Rags to Riches. Which of the following would be found through ratio analysis of the company's financial statements?
A)The accounts receivable turnover ratio is 7.76 in 2020. 
B)Cost of goods sold increased $50,000 or 23.8% in 2020. 
C)Accounts receivable increased $22,000 during 2020. 
D)Total assets decreased 18.4% during 2020.

Quizplus · Accepted Answer

Ratio analysis involves calculating financial performance ratios from the data found in financial statements, such as the accounts receivable turnover ratio, which measures how efficiently a company collects on its receivables.

Selected Data from the Financial Statements Are Provided Below