The Stemple Corporation data for the current year:

What would a horizontal analysis report with respect to current liabilities show?
A)Current liabilities are 6.96% of total capital.
B)Current liabilities saw a 72.46% increase from the prior year to the current year.
C)The current ratio is 1.24.
D)Current liabilities saw a 38.00% increase from the prior year to the current year.

Question

The Stemple Corporation data for the current year:

What would a horizontal analysis report with respect to current liabilities show?
A)Current liabilities are 6.96% of total capital. 
B)Current liabilities saw a 72.46% increase from the prior year to the current year. 
C)The current ratio is 1.24. 
D)Current liabilities saw a 38.00% increase from the prior year to the current year.

Quizplus · Accepted Answer

D)
Current liabilities - Prior $30,000
Current 41,400
Increase 11,400 /30,000 = 38%

The Stemple Corporation Data for the Current Year