The Nichols Corporation data for the current year:

What would a horizontal analysis report with respect to current liabilities?
A)Current liabilities saw a 30% increase from the prior year to the current year.
B)Current liabilities are 11.77% of total capital.
C)The current ratio is 1.06.
D)Current liabilities saw a 76.92% increase from the prior year to the current year.

Question

The Nichols Corporation data for the current year:

What would a horizontal analysis report with respect to current liabilities?
A)Current liabilities saw a 30% increase from the prior year to the current year. 
B)Current liabilities are 11.77% of total capital. 
C)The current ratio is 1.06. 
D)Current liabilities saw a 76.92% increase from the prior year to the current year.

Quizplus · Accepted Answer

A)
Current liabilities prior yr.$55,000
Current liabilities current 71,500
Increase 16,500 / 55,000 = 30%

The Nichols Corporation Data for the Current Year