Presented below is selected data from the financial statements of Trend, Inc. for the current and prior year: 12/31/20X2 12/31/20X1 Current assets $330,000 $220,000 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): A. The current ratio for 20X2 is 1.22. OB. Current assets in 20X2 are 14.35% of total assets. OC. The current ratio for 20X1 is 1.22. OD. Total liabilities were 51.74 % of total assets in 20X2
Presented below is selected data from the financial statements of Trend, Inc. for the current and prior year: 12/31/20X2 12/31/20X1 Current assets $330,000 $220,000 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): A. The current ratio for 20X2 is 1.22. OB. Current assets in 20X2 are 14.35% of total assets. OC. The current ratio for 20X1 is 1.22. OD. Total liabilities were 51.74 % of total assets in 20X2
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
Current assets
$330,000
$220,000
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):
A. The current ratio for 20X2 is 1.22.
B.
Current assets in 20X2 are 14.35% of total assets.
OC. The current ratio for 20X1 is 1.22.
[] D.
Total liabilities were 51.74 % of total assets in 20X2.
QUESTION DE](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2cc5ccdc-1b81-44e6-ba19-4284c92b30c0%2Fc5d837a9-d5db-4e55-90f1-1ec278cf94eb%2Fry6z6n7_processed.jpeg&w=3840&q=75)
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
Current assets
$330,000
$220,000
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):
A. The current ratio for 20X2 is 1.22.
B.
Current assets in 20X2 are 14.35% of total assets.
OC. The current ratio for 20X1 is 1.22.
[] D.
Total liabilities were 51.74 % of total assets in 20X2.
QUESTION DE
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