If Rick's sales decreased from $90,000 (year 1) to $45,000 (year 2) and its cost of goods sold decreased from $40,000 (year 1) to $15,000 (year 2), then vertical analysis based on sales would show the following for cost of goods sold for the two periods:

A) 33.33% and 44.44%.
B) 44.44% and 33.33%.
C) 300% and 225%.
D) None of the above

Answer: B

Business

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