Max's Tire Center Company
Selected data from the financial statements of Max's Tire Center are provided below.

- Refer to the selected data provided for Max's Tire Center. Which of the following would result from a horizontal analysis of Max's cash and cash equivalents in 2012?
A) Cash and cash equivalents increased by $16,000 or 15.80% during 2012.
B) Cash and cash equivalents increased by $16,000 or 15.38% during 2012.
C) Cash and cash equivalents are 8.57% of total assets in 2012.
D) The free cash flow is $35,000 in 2012.

Question

Max's Tire Center Company 
Selected data from the financial statements of Max's Tire Center are provided below.

- Refer to the selected data provided for Max's Tire Center. Which of the following would result from a horizontal analysis of Max's cash and cash equivalents in 2012?
A) Cash and cash equivalents increased by $16,000 or 15.80% during 2012. 
B) Cash and cash equivalents increased by $16,000 or 15.38% during 2012. 
C) Cash and cash equivalents are 8.57% of total assets in 2012. 
D) The free cash flow is $35,000 in 2012.

Quizplus · Accepted Answer

Horizontal analysis involves comparing financial data over a period of time. The correct percentage increase for cash and cash equivalents in 2012 is 15.38%.