1. Assume that you are looking at an analysis of financial statements of Nike. Which of the below would be the best example of horizontal analysis?

a. You observe that cost of goods sold was a higher percentage of net sales this year than last year.

b. You observe that for Nike Inventories are 12% of total assets, while for reebok this number is equal to 9%.

c. You observe that cash to total assets is equal to 16% for the trailing twelve months.

d. You observe that current liabilities are 5% higher this year than last year.

2. Assume administrative expenses were equal to 104,000 in 2013, and to 97,400 in 2014. What was the percentage change in administrative expenses in 2014?

a. 6.78%

b. - 6.78%

c. 6.35%

d. -6.35%

3. Assume net sales are greater than cost of goods sold. Further assume that net sales rise by 13%, while cost of goods sold rise by 10%. We can conclude that

a. Gross profit rose by less than 13%.

b. Gross profit rose by more than 13%.

c. Gross profit rose by 3%.

d. Gross profit declined by 3%.