Justice Corporation Income Statement Year Ended December 31, 2017 Net Sales $30,
ID: 2797146 • Letter: J
Question
Justice Corporation
Income Statement
Year Ended December 31, 2017
Net Sales
$30,525
Cost of Goods Sold
5,945
Gross Profit
24,580
Operating Expenses
6,803
Operating Income
17,777
Interest Expense
181
Income Before Income Taxes
17,596
Income Tax Expense
2,705
Net Income
$14,891
JusticeJustice
Corporation reported the following financial statement
Justice Corporation
Comparative Balance Sheet
December 31, 2017 and 2016
2017
2016
Assets
Current Assets:
Cash and Cash Equivalents
$2,122
$1,761
Accounts Receivable
2,129
1,940
Merchandise Inventory
1,326
1,051
Prepaid Expenses
1,734
1,819
Total Current Assets
7,311
6,571
Other Assets
18,092
15,528
Total Assets
$25,403
$22,099
Liabilities
Current Liabilities
$7,234
$8,293
Long-term Liabilities
4,661
2,105
Total Liabilities
11,895
10,398
Stockholders' Equity
Common Stock, no par
6,108
5,401
Retained Earnings
7,400
6,300
Total Stockholders' Equity
13,508
11,701
Total Liabilities and Stockholders' Equity
$25,403
$22,099
Horizontal analysis of JusticeJustice's balance sheet for 2017 would report:
A.Cash as 8.358.35% of total assets.
B.inventory turnover of 55 times.
C.a current ratio of 1.011.01.
D.a 2020% increase in Cash and Cash Equivalents
Justice Corporation
Income Statement
Year Ended December 31, 2017
Net Sales
$30,525
Cost of Goods Sold
5,945
Gross Profit
24,580
Operating Expenses
6,803
Operating Income
17,777
Interest Expense
181
Income Before Income Taxes
17,596
Income Tax Expense
2,705
Net Income
$14,891
Explanation / Answer
D.a 2020% increase in Cash and Cash Equivalents
the above is the answer
as Horizontal analysis meansures change over the period.
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