Oglethorpe Company reports the following information from the vertical analysis of its balance sheet: Current assets:
$23.5 \%$ in 2017
$23.9 \%$ in 2018 Which of the following statements could be logically concluded from the above data?
A) The company's current ratio declined.
B) The company's current assets declined in proportion to its total assets.
C) The company's ability to pay current liabilities declined.
D) The company's total current assets declined by 0.4%.

Question

Quizplus · Accepted Answer

The increase from 23.5% to 23.9% indicates that the proportion of current assets to total assets increased, not declined, which contradicts choices A, C, and D.

Oglethorpe Company Reports the Following Information from the Vertical Analysis 23.5%23.5 \%23.5%

Oglethorpe Company Reports the Following Information from the Vertical Analysis $23.5 \%$