The Fountain Corporation data for the current year and prior year is as follows: Current year Prior year $76,200 $60,000 $59,400 $51,200 $82,500 $38,000 $47,880 $18,420 $618,000 $478,140 $139,860 $47,860 $50,000 $92,000 $80,000 $23,000 $20,000 $69,000 $60,000 With respect to long-term liabilities, what would a horizontal analysis report? Account Current assets Account receivable Merchandise inventory Current liabilities Long-term liabilities Common stock (5,000 shares) Retained earnings Net sales revenue COGS Gross Profit Selling/General expenses Net income before taxes Income tax expense Net Income A. Long-term liabilities increased by $8,000 B. Long-term liabilities decreased by $8,000. OC. Long-term liabilities increased by 21.05%. OD. Long-term liabilities decreased by 21.05%. $44,000 $40,000 $55,000 $30,000 $42,000 $17,000 $515,000 $385,000 $130,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Fountain Corporation data for the current year and prior year is as follows:
Current year
Prior year
$76,200
$60,000
$59,400
$51,200
$82,500
$38,000
$47,880
$18,420
$618,000
$478,140
$139,860
$47,860
$50,000
$92,000
$80,000
$23,000
$20,000
$69,000
$60,000
With respect to long- term liabilities, what would a horizontal analysis report?
Account
Current assets
Account receivable
Merchandise inventory
Current liabilities
Long-term liabilities
Common stock (5,000 shares)
Retained earnings
Net sales revenue
COGS
Gross Profit
Selling/General expenses
Net income before taxes
Income tax expense
Net Income
A. Long-term liabilities increased by $8,000
B. Long-term liabilities decreased by $8,000.
OC. Long-term liabilities increased by 21.05%.
OD. Long-term liabilities decreased by 21.05%.
ithat
$44,000
$40,000
$55,000
$30,000
$42,000
$17,000
$515,000
$385,000
$130,000
Transcribed Image Text:The Fountain Corporation data for the current year and prior year is as follows: Current year Prior year $76,200 $60,000 $59,400 $51,200 $82,500 $38,000 $47,880 $18,420 $618,000 $478,140 $139,860 $47,860 $50,000 $92,000 $80,000 $23,000 $20,000 $69,000 $60,000 With respect to long- term liabilities, what would a horizontal analysis report? Account Current assets Account receivable Merchandise inventory Current liabilities Long-term liabilities Common stock (5,000 shares) Retained earnings Net sales revenue COGS Gross Profit Selling/General expenses Net income before taxes Income tax expense Net Income A. Long-term liabilities increased by $8,000 B. Long-term liabilities decreased by $8,000. OC. Long-term liabilities increased by 21.05%. OD. Long-term liabilities decreased by 21.05%. ithat $44,000 $40,000 $55,000 $30,000 $42,000 $17,000 $515,000 $385,000 $130,000
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