The following is summary of information presented on the financial statements of a company on December 31, 2017 Account 2017 2016 Current Assets $68,000 $51,000 Accounts Receivable 83,000 78,000 Merchandise Inventory 52,000 45,000 Current Liabilities 77,000 53,000 Long-term Liabilities 34,000 51,000 Common Stock 51,000 42,000 Retained Earnings 41,000 28,000 Net Sales Revenue $526,000 $504,000 Cost of Goods Sold 400,000 398,000 Gross Profit $126,000 $106,000 Selling Expenses 50,000 51,000 Net Income Before Income Tax Expense $76,000 $55,000 Income Tax Expense 30,000 $16,900 Net Income $46,000 $38,100 With respect to current liabilities, a horizontal analysis reveals ________.
A) that current liabilities are 37.93% of total equity
B) a 45.28% increase in current liabilities
C) a current ratio of 0.88
D) a 31.17% increase in current liabilities
B .B)
Increase (Decrease)
2017 2016 Amount Percentage
Liabilities
Current liabilities $77,000 $53,000 24,000 45.28
You might also like to view...
Convertible bonds normally sell at a higher price than non-convertible bonds
a. True b. False Indicate whether the statement is true or false
In a depth interview, the interviewer should ________
A) avoid appearing superior and put the respondent at ease B) be detached and objective, yet personable C) probe the respondent D) all of the above
Any effort by the Federal Trade Commission (FTC) to evaluate expected deceptive marketing practices would be seriously flawed because it would mean punishing business on the basis of what the FTC thinks might happen rather than on what actually does happen.
Answer the following statement true (T) or false (F)
A warranty in which the seller warrants that he or she has valid title to the goods he or she is selling and that the transfer of title is rightful is known as a warranty ________
A) of no security interests B) of no interference C) of good title D) against infringements