The Nichols Corporation data for the current year: What would a horizontal analysis report with respect to current assets?
A)Inventory turnover of 9.17 times
B)Current ratio of 1.06
C)A 26.00% increase in current assets
D)Current assets as 40.60% of total assets

Question

The Nichols Corporation data for the current year:  What would a horizontal analysis report with respect to current assets?
A)Inventory turnover of 9.17 times 
B)Current ratio of 1.06 
C)A 26.00% increase in current assets 
D)Current assets as 40.60% of total assets

Quizplus · Accepted Answer

A horizontal analysis report shows the percentage change in financial statement items over a period of time. The question mentions only current assets, and the correct answer is the option that indicates a percentage increase in current assets. Option A and B relate to inventory turnover and current ratio, respectively, which are not relevant to the question. Option D shows the percentage of current assets out of total assets, but does not indicate any change over time. Therefore, option C is the correct choice as it indicates a 26.00% increase in current assets.

The Nichols Corporation Data for the Current Year: What