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A horizontal analysis of the balance sheet would show (select all that apply):

A horizontal analysis of the balance sheet would show (select all that apply):

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question Completion Status: 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. Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Transcribed Image Text:Question Completion Status: 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. Click Save and Submit to save and submit. Click Save All Answers to save all answers.
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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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