The McCumber Corporation data for the current year: With respect to common stock, what would a horizontal analysis report?
A)Stockholder's equity as 7.75% of total capital
B)Sales return of $11.17
C)87.72% increase from prior to current year of cost of goods sold
D)Increase of $5,880 in common stock

Question

The McCumber Corporation data for the current year:  With respect to common stock, what would a horizontal analysis report?
A)Stockholder's equity as 7.75% of total capital 
B)Sales return of $11.17 
C)87.72% increase from prior to current year of cost of goods sold 
D)Increase of $5,880 in common stock

Quizplus · Accepted Answer

A horizontal analysis compares data from one period to another period to determine the percentage change. Therefore, a horizontal analysis report for common stock would show the percentage increase or decrease in the common stock from the prior year to the current year. Option D states an increase of $5,880 in common stock, which indicates a positive change or increase in the current year. Therefore, D is the correct answer. Options A, B, and C are not related to a horizontal analysis report for common stock.

The McCumber Corporation Data for the Current Year: with Respect