Oglethorpe Company Reports the Following Information from the Vertical Analysis

question 143

Multiple Choice

Oglethorpe Company reports the following information from the vertical analysis of their balance sheet:
Current assets:
23.5 % in 2014
23.9% in 2013
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%.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a certain period of time.

Quantity Demanded

The overall volume of a good or service that customers are ready and financially able to acquire at a certain price point.

Price Floor

A government-imposed minimum price charged for a commodity, intended to ensure fair conditions for producers.

Equilibrium Price

Equilibrium price refers to the price point in the market where the amount of goods provided matches the amount of goods consumers want to buy.