The Nichols Corporation data for the current year: What would a horizontal analysis report with respect to common stock?

Question

The Nichols Corporation data for the current year:  What would a horizontal analysis report with respect to common stock?

Quizplus · Accepted Answer

A horizontal analysis compares data from the current year to a previous year. Since no previous year's data is given for common stock, it cannot be analyzed using horizontal analysis. Option B shows an increase in common stock, which can be seen by comparing the current year's data to the previous year's data (not given in the question). Therefore, option B is the correct answer. Options A, C, and D are irrelevant to the analysis of common stock.

The Nichols Corporation Data for the Current Year: What