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%.

---

Definitions:

Bonds

Fixed-income investments where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a variable or fixed interest rate.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, typically a percentage of the money received from the transaction.

Par Value

The face value of a bond or stock as stated by the issuer, which may differ from its market value.

Dividend Paid

Dividend Paid signifies the actual distribution of a company's earnings to its shareholders in the form of cash, checks, or electronic transfers.