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QUESTION 30 Presented below is selected data from the financial statements of Cycology, Inc. for the current and prior year: 12/31/20X1 12/31/20X2 $430,000 $220,000 Current assets $2,500,000 $1,950,000 Total assets $210,000 $180,000 Current liabilities Total stockholders' equity $1,290,000 $770,000 Net sales $4,800,000 $3,900,000 Cost of Goods Sold $3,200,000 $2,690,000 Gross profit $1,600,000 $1,210,000 Wages expense $973,000 $869,000 Supplies expense $60,000 $50,000 Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 Net income $520,000 $250,000 A horizontal analysis of the data would show (select all that apply): O A. Current assets in 20X2 are 17.2% of total assets. O B. Cost of goods sold increased 18.96% from 20X1 to 20X2. O C. The current ratio for 20X2 is 2.05. O D. Net income increased 108% from 20X1 to 20X2. O E. Cost of goods sold in 20X2 is 67.7% of net sales.

QUESTION 30 Presented below is selected data from the financial statements of Cycology, Inc. for the current and prior year: 12/31/20X1 12/31/20X2 $430,000 $220,000 Current assets $2,500,000 $1,950,000 Total assets $210,000 $180,000 Current liabilities Total stockholders' equity $1,290,000 $770,000 Net sales $4,800,000 $3,900,000 Cost of Goods Sold $3,200,000 $2,690,000 Gross profit $1,600,000 $1,210,000 Wages expense $973,000 $869,000 Supplies expense $60,000 $50,000 Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 Net income $520,000 $250,000 A horizontal analysis of the data would show (select all that apply): O A. Current assets in 20X2 are 17.2% of total assets. O B. Cost of goods sold increased 18.96% from 20X1 to 20X2. O C. The current ratio for 20X2 is 2.05. O D. Net income increased 108% from 20X1 to 20X2. O E. Cost of goods sold in 20X2 is 67.7% of net sales.

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 30 Presented below is selected data from the financial statements of Cycology, Inc. for the current and prior year: 12/31/20X1 12/31/20X2 $430,000 $220,000 Current assets $2,500,000 $1,950,000 Total assets $210,000 $180,000 Current liabilities Total stockholders' equity $1,290,000 $770,000 Net sales $4,800,000 $3,900,000 Cost of Goods Sold $3,200,000 $2,690,000 Gross profit $1,600,000 $1,210,000 Wages expense $973,000 $869,000 Supplies expense $60,000 $50,000 Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 Net income $520,000 $250,000 A horizontal analysis of the data would show (select all that apply): O A. Current assets in 20X2 are 17.2% of total assets. O B. Cost of goods sold increased 18.96% from 20X1 to 20X2. O C. The current ratio for 20X2 is 2.05. O D. Net income increased 108% from 20X1 to 20X2. O E Cost of goods sold in 20X2 is 67.7% of net sales.
Transcribed Image Text:QUESTION 30 Presented below is selected data from the financial statements of Cycology, Inc. for the current and prior year: 12/31/20X1 12/31/20X2 $430,000 $220,000 Current assets $2,500,000 $1,950,000 Total assets $210,000 $180,000 Current liabilities Total stockholders' equity $1,290,000 $770,000 Net sales $4,800,000 $3,900,000 Cost of Goods Sold $3,200,000 $2,690,000 Gross profit $1,600,000 $1,210,000 Wages expense $973,000 $869,000 Supplies expense $60,000 $50,000 Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 Net income $520,000 $250,000 A horizontal analysis of the data would show (select all that apply): O A. Current assets in 20X2 are 17.2% of total assets. O B. Cost of goods sold increased 18.96% from 20X1 to 20X2. O C. The current ratio for 20X2 is 2.05. O D. Net income increased 108% from 20X1 to 20X2. O E Cost of goods sold in 20X2 is 67.7% of net sales.
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