The McCumber Corporation Data for the Current Year: with Respect

question 143

Multiple Choice

The McCumber Corporation data for the current year: With respect to common stock, what would a horizontal analysis report?

• A)Stockholder's equity as 7.75% of total capital
• B)Sales return of $11.17
• C)87.72% increase from prior to current year of cost of goods sold
• D)Increase of $5,880 in common stock

---

Definitions:

Vested Options

Stock options granted to an employee that the employee has the right to exercise, contingent upon fulfilling certain conditions such as employment duration.

Income

The financial gain received by an individual or a business in exchange for providing goods, rendering services, or through investing capital.

Retained Earnings

The part of a company's net earnings not paid out as dividends but kept within the company.