Selected Data from the Financial Statements Are Provided in the Following

Selected data from the financial statements are provided in the following table:
$\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Accounts receivable } & \$ 120,000 & \$ 76,000 \\\text { Inventory } & 24,000 & 32,000 \\\text { Total assets } & 900,000 & 760,000 \\\text { Net sales } & 760,000 & 540,000 \\\text { Cost of goods sold } & 320,000 & 420,000\end{array}$
-Refer to the figure Rags to Riches.Which of the following would result from a horizontal analysis of the company's income statement?

A) Cost of goods sold is 42.1% of net sales for Year 2.
B) Gross profit is 57.9% of net sales for Year 2.
C) Cost of goods sold decreased 23.8% from Year 1 to Year 2.
D) Inventory decreased $4,000 or 20% during Year 1.