Quiz: Chapter 17 Quiz Time Remaining: 01:05:18 Submit Quiz This Question: 10 pts

Question

Quiz: Chapter 17 Quiz Time Remaining: 01:05:18 Submit Quiz This Question: 10 pts 6 of 100 complete) ? This Quiz: 100 pts possible The following is summary of information presented on the financial statements of a company on December 31, 2017 Account Current Assets Accounts Receivable Merchandise Inventory Current Liabilities Long-term Liabilities Common Stock Retained Earnings 2017 2016 $69,000 $52,000 85,000 78,000 54,000 45,000 79,000 57,000 33,000 52,000 51,000 40,000 45,000 26,000 Net Sales Revenue Cost of Goods Sold $527,000 $502,000 04,000 398,000 A. a 27 85% increase in current liabilities O B. a 38.60% increase in current liabilities that current liabilities are 37.98% of total equity a current ratio of 0 87 C. O D.

Explanation / Answer

Horizontal analysis :

Amount increase decrease = 79000-57000 = 22000

Percentage increase = 22000*100/57000 = 38.60%

so answer is b) a 38.60% increase in current liability

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