The McCumber Corporation data for the current year:

With respect to current liabilities,what would a horizontal analysis report?
A)The current ratio is 0.92.
B)Current liabilities are 13.35% of total capital.
C)Current liabilities saw a 50% increase from the prior year to the current year.
D)Current liabilities saw a 66.67% increase from the prior year to the current year.

Question

The McCumber Corporation data for the current year:

With respect to current liabilities,what would a horizontal analysis report?
A)The current ratio is 0.92. 
B)Current liabilities are 13.35% of total capital. 
C)Current liabilities saw a 50% increase from the prior year to the current year. 
D)Current liabilities saw a 66.67% increase from the prior year to the current year.

Quizplus · Accepted Answer

C)
Current liabilities prior yr.$55,000
Current liabilities current 82,500
Increase 27,500 / 55,000 = 50%

The McCumber Corporation Data for the Current Year