A horizontal analysis of the balance sheet would show (select all that apply):
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Current assets
Total assets
Current liabilities
Total liabilities
Total stockholders' equity
Net sales
Cost of Goods Sold
Wages expense
Supplies expense
Depreciation expense
Interest expense
12/31/20X2 12/31/20X1
Net income
$330,000
$220,000
$2,300,000 $1,950,000
$195,000
$180,000
$1,190,000
$1,180,000
$1,110,000 $770,000
$5,200,000 $3,900,000
$3,800,000 $2,690,000
$953,000 $869,000
$60,000
$50,000
$35,000
$32,000
$12,000
$9,000
$340,000
$250,000
A horizontal analysis of the balance sheet would show (select all that apply):
A. Current assets increased 50% from 20X1 to 20X2
B. Net income increased 36% from 20x1 to 20x2.
C. The debt ratio for 20X2 is 51.74%.
D. Total stockholders' equity increased 44.16 % from 20x1 to 20X2
E. Total assets increased 17.95% from 20X1 to 20X2.
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It has been mentioned in the question that a horizontal analysis is to be made on the balance sheet only and it will show the changes in the balance sheet only not on all the items given in the question.
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