At January 1, 2020, Culver Inc. had accounts receivable of $69,000. At December 31, 2020, accounts receivable is $54,000. Sales
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Answer:
Explanation:
1. Please refer to the attached file.
2. The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) decreased as a percentage of sales. As a result: net income as a percentage of sales increased by 2.5 percentage points. The sales promotion campaign appears to have been increased. While selling expenses as a percent of sales increased slightly, the decreased cost was more than made up for by increased sales.
