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The following is a summary of information presented on the financial statements of a company on December 31, 2017. Account 2017 ($) 2016 ($) Current Assets 86,000 70,000 Accounts Receivable 61,000 69,000 Merchandise Inventory 63,000 56,000 Current Liabilities 56,000 49,000 Long-term Liabilities 40,000 53,000 Common Stock Retained Earnings 71,000 57,000 69,000 49,000 With respect to long-term liabilities, a horizontal analysis reveals. a) long-term liabilities decreased by $14,000. b) long-term liabilities decreased by 24.56%. c) long-term liabilities decreased by 24.53%. d) long-term liabilities decreased by $7,000.

The following is a summary of information presented on the financial statements of a company on December 31, 2017. Account 2017 ($) 2016 ($) Current Assets 86,000 70,000 Accounts Receivable 61,000 69,000 Merchandise Inventory 63,000 56,000 Current Liabilities 56,000 49,000 Long-term Liabilities 40,000 53,000 Common Stock Retained Earnings 71,000 57,000 69,000 49,000 With respect to long-term liabilities, a horizontal analysis reveals. a) long-term liabilities decreased by $14,000. b) long-term liabilities decreased by 24.56%. c) long-term liabilities decreased by 24.53%. d) long-term liabilities decreased by $7,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following is a summary of information presented on the financial statements of a company on December 31, 2017. Account 2017 ($) 2016 ($) Current Assets 86,000 70,000 Accounts Receivable 61,000 69,000 Merchandise Inventory 63,000 56,000 Current Liabilities 56,000 49,000 Long-term Liabilities 40,000 53,000 Common Stock Retained Earnings 71,000 57,000 69,000 49,000 With respect to long-term liabilities, a horizontal analysis reveals. a) long-term liabilities decreased by $14,000. b) long-term liabilities decreased by 24.56%. c) long-term liabilities decreased by 24.53%. d) long-term liabilities decreased by $7,000.
Transcribed Image Text:The following is a summary of information presented on the financial statements of a company on December 31, 2017. Account 2017 ($) 2016 ($) Current Assets 86,000 70,000 Accounts Receivable 61,000 69,000 Merchandise Inventory 63,000 56,000 Current Liabilities 56,000 49,000 Long-term Liabilities 40,000 53,000 Common Stock Retained Earnings 71,000 57,000 69,000 49,000 With respect to long-term liabilities, a horizontal analysis reveals. a) long-term liabilities decreased by $14,000. b) long-term liabilities decreased by 24.56%. c) long-term liabilities decreased by 24.53%. d) long-term liabilities decreased by $7,000.
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