The Bristol Corporation data for the current year and prior year is as follows: With respect to common stock, what would a horizontal analysis report?
A)Stockholder's equity as 81.24% of total capital
B)Sales return of $11.17
C)24.19% increase from prior to current year of cost of goods sold
D)Increase of $11,800 in common stock

Question

The Bristol Corporation data for the current year and prior year is as follows:  With respect to common stock, what would a horizontal analysis report?
A)Stockholder's equity as 81.24% of total capital 
B)Sales return of $11.17 
C)24.19% increase from prior to current year of cost of goods sold 
D)Increase of $11,800 in common stock

Quizplus · Accepted Answer

Horizontal analysis compares financial data from one period to the next period. Therefore, the only option related to common stock that shows an increase from the prior year to the current year is choice D, which states an increase of $11,800 in common stock. Options A, B, and C are not related to common stock. Option A is related to the composition of total capital, option B is related to sales, and option C is related to cost of goods sold.

The Bristol Corporation Data for the Current Year and Prior