Question 1. Which statement is true?
A. When the cost of goods sold as a percentage of sales increases the gross margin percentage will increase.
B. It is possible for cost of goods sold in dollars to increase while cost of good sold as a percentage of sales decreases.
C. If gross margin percentage is the same for the current and past year, then sales and costs of goods sold in dollars did not change
D. None of the above.
Question 2. Apex reported the following: Quick assets of $55,000. Current assets of $150,000. Total Liabilities of $300,000. Average net receivables of $12,600. Beginning inventory of $38,000. Long term liabilities of $200,000. Net credit sales of $126,000. Cost of goods sold $84,000. Ending Inventory of $46,000. What is the current ratio?