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Presented below is selected data from the financial statements of Trend, Inc. for the current and prior year: 12/31/20X2 12/31/20X1 $330,000 $220,000 Current assets Total assets $2,300,000 $1,950,000 Current liabilities $195,000 $180,000 Total liabilities $1,190,000 $1,180,000 Total stockholders' equity $1,110,000 $770,000 Net sales $5,200,000 $3,900,000 Cost of Goods Sold $3,800,000 $2,690,000 Wages expense $953,000 $869,000 Supplies expense $60,000 $50,000 Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 Net income $340,000 $250,000 A Vertical analysis of the data would show (select all that apply): O A. The current ratio for 20X2 is 1.22. O B. The current ratio for 20X1 is 1.22. O C. Total liabilities were 51.74 % of total assets in 20X2. O D. Current assets in 20X2 are 14.35% of total assets.

Presented below is selected data from the financial statements of Trend, Inc. for the current and prior year: 12/31/20X2 12/31/20X1 $330,000 $220,000 Current assets Total assets $2,300,000 $1,950,000 Current liabilities $195,000 $180,000 Total liabilities $1,190,000 $1,180,000 Total stockholders' equity $1,110,000 $770,000 Net sales $5,200,000 $3,900,000 Cost of Goods Sold $3,800,000 $2,690,000 Wages expense $953,000 $869,000 Supplies expense $60,000 $50,000 Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 Net income $340,000 $250,000 A Vertical analysis of the data would show (select all that apply): O A. The current ratio for 20X2 is 1.22. O B. The current ratio for 20X1 is 1.22. O C. Total liabilities were 51.74 % of total assets in 20X2. O D. Current assets in 20X2 are 14.35% of total assets.

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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Presented below is selected data from the financial statements of Trend, Inc. for the current and prior year: 12/31/20X2 12/31/20X1 $330,000 $220,000 Current assets Total assets $2,300,000 $1,950,000 Current liabilities $195,000 $180,000 Total liabilities $1,190,000 $1,180,000 Total stockholders' equity $1,110,000 $770,000 Net sales $5,200,000 $3,900,000 Cost of Goods Sold $3,800,000 $2,690,000 Wages expense $953,000 $869,000 Supplies expense $60,000 $50,000 Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 Net income $340,000 $250,000 A Vertical analysis of the data would show (select all that apply): O A. The current ratio for 20X2 is 1.22. O B. The current ratio for 20X1 is 1.22. O C. Total liabilities were 51.74 % of total assets in 20X2 O D.Current assets in 20X2 are 14.35% of total assets
Transcribed Image Text:Presented below is selected data from the financial statements of Trend, Inc. for the current and prior year: 12/31/20X2 12/31/20X1 $330,000 $220,000 Current assets Total assets $2,300,000 $1,950,000 Current liabilities $195,000 $180,000 Total liabilities $1,190,000 $1,180,000 Total stockholders' equity $1,110,000 $770,000 Net sales $5,200,000 $3,900,000 Cost of Goods Sold $3,800,000 $2,690,000 Wages expense $953,000 $869,000 Supplies expense $60,000 $50,000 Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 Net income $340,000 $250,000 A Vertical analysis of the data would show (select all that apply): O A. The current ratio for 20X2 is 1.22. O B. The current ratio for 20X1 is 1.22. O C. Total liabilities were 51.74 % of total assets in 20X2 O D.Current assets in 20X2 are 14.35% of total assets
Expert Solution
Step 1 Introduction

Current Ratio: It is a liquidity ratio that assesses a company's capacity to pay short-term commitments, such as those that are due within one year of the measurement period. In order to service its current debt and other payables, a corporation must maximise the current assets on its balance sheet, which is explained to investors and analysts in this document.

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