Table 18 -4
The following is a summary of information presented on the financial statements of The Cake Company on December 31, 2017.

-Refer to Table 18-4.What would a horizontal analysis report with respect to long-term liabilities show?
A) that long-term liabilities decreased by $30,000
B) that long-term liabilities decreased by 40%
C) that long-term liabilities decreased by 60%
D) that long-term liabilities decreased by 67%

Question

Table 18 -4
The following is a summary of information presented on the financial statements of The Cake Company on December 31, 2017.
 
-Refer to Table 18-4.What would a horizontal analysis report with respect to long-term liabilities show?
A) that long-term liabilities decreased by $30,000 
B) that long-term liabilities decreased by 40% 
C) that long-term liabilities decreased by 60% 
D) that long-term liabilities decreased by 67%

Quizplus · Accepted Answer

B) Calculations: ($50,000 - $30,000)/$50,000 = 0.40

Table 18 -4 the Following Is a Summary of Information Presented on the Presented