The following is summary of information presented on the financial statements of a company on December 31, 2019. Account 2019 2018 Current Assets $ 69 comma 000$69,000 $ 53 comma 000$53,000 Accounts Receivable 83 comma 00083,000 80 comma 00080,000 Merchandise Inventory 53 comma 00053,000 41 comma 00041,000 Current Liabilities 77 comma 00077,000 49 comma 00049,000 Longminus−term Liabilities 30 comma 00030,000 52 comma 00052,000 Common Stock 54 comma 00054,000 44 comma 00044,000 Retained Earnings 44 comma 00044,000 29 comma 00029,000 Net Sales Revenue $ 527 comma 000$527,000 $ 508 comma 000$508,000 Cost of Goods Sold 405 comma 000405,000 396 comma 000396,000 Gross Profit $ 122 comma 000$122,000 $ 112 comma 000$112,000 Selling Expenses 45 comma 00045,000 58 comma 00058,000 Net Income Before Income Tax Expense $ 77 comma 000$77,000 $ 54 comma 000$54,000 Income Tax Expense 29 comma 00029,000 $ 16 comma 600$16,600 Net Income $ 48 comma 000$48,000 $ 37 comma 400$37,400 With respect to current liabilities, a horizontal analysis reveals ________. (Round your answer to two decimal places.) . A. that current liabilities are 37.5637.56%of total equity B. a current ratio of 0.90.9 C. a 36.3636.36% increase in current liabilities D. a 57.1457.14% increase in current liabilities
The following is summary of information presented on the financial statements of a company on December 31, 2019. Account 2019 2018 Current Assets $ 69 comma 000$69,000 $ 53 comma 000$53,000 Accounts Receivable 83 comma 00083,000 80 comma 00080,000 Merchandise Inventory 53 comma 00053,000 41 comma 00041,000 Current Liabilities 77 comma 00077,000 49 comma 00049,000 Longminus−term Liabilities 30 comma 00030,000 52 comma 00052,000 Common Stock 54 comma 00054,000 44 comma 00044,000 Retained Earnings 44 comma 00044,000 29 comma 00029,000 Net Sales Revenue $ 527 comma 000$527,000 $ 508 comma 000$508,000 Cost of Goods Sold 405 comma 000405,000 396 comma 000396,000 Gross Profit $ 122 comma 000$122,000 $ 112 comma 000$112,000 Selling Expenses 45 comma 00045,000 58 comma 00058,000 Net Income Before Income Tax Expense $ 77 comma 000$77,000 $ 54 comma 000$54,000 Income Tax Expense 29 comma 00029,000 $ 16 comma 600$16,600 Net Income $ 48 comma 000$48,000 $ 37 comma 400$37,400 With respect to current liabilities, a horizontal analysis reveals ________. (Round your answer to two decimal places.) . A. that current liabilities are 37.5637.56%of total equity B. a current ratio of 0.90.9 C. a 36.3636.36% increase in current liabilities D. a 57.1457.14% increase in current liabilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
The following is summary of information presented on the financial statements of a company on December 31, 2019.
|
Account
|
2019
|
2018
|
|
Current Assets
|
$ 69 comma 000$69,000
|
$ 53 comma 000$53,000
|
|
|
83 comma 00083,000
|
80 comma 00080,000
|
|
Merchandise Inventory
|
53 comma 00053,000
|
41 comma 00041,000
|
|
Current Liabilities
|
77 comma 00077,000
|
49 comma 00049,000
|
|
Longminus−term
Liabilities |
30 comma 00030,000
|
52 comma 00052,000
|
|
Common Stock
|
54 comma 00054,000
|
44 comma 00044,000
|
|
|
44 comma 00044,000
|
29 comma 00029,000
|
|
|
|
|
|
Net Sales Revenue
|
$ 527 comma 000$527,000
|
$ 508 comma 000$508,000
|
|
Cost of Goods Sold
|
405 comma 000405,000
|
396 comma 000396,000
|
|
Gross Profit
|
$ 122 comma 000$122,000
|
$ 112 comma 000$112,000
|
|
Selling Expenses
|
45 comma 00045,000
|
58 comma 00058,000
|
|
Net Income Before Income Tax Expense
|
$ 77 comma 000$77,000
|
$ 54 comma 000$54,000
|
|
Income Tax Expense
|
29 comma 00029,000
|
$ 16 comma 600$16,600
|
|
Net Income
|
$ 48 comma 000$48,000
|
$ 37 comma 400$37,400
|
With respect to current liabilities, a horizontal analysis reveals ________. (Round your answer to two decimal places.)
.
A. that current liabilities are 37.5637.56%of total equity
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