The Following Is a Summary of Information Presented on the Financial

question 84

Multiple Choice

The following is a summary of information presented on the financial statements of The Cake Company on December 31, 2014. What would a horizontal analysis report with respect to current liabilities?

• A)That current liabilities are 38.46% of total capital
• B)A 50.00% increase in current liabilities
• C)A current ratio of .87
• D)A 33.33% increase in current liabilities

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Definitions:

Staircase Analysis

A method used to assess and plan a product's or project's steps towards achieving a series of short-term goals leading towards a long-term goal.

Potential Sales

An estimate of the total sales revenue a company can potentially achieve in a specific market under ideal conditions.

Market Segments

Divisions within a market that congregate consumers or organizations with similar needs and characteristics, allowing for targeted marketing strategies.

Brand Awareness

The degree to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services.