The Jiffy Corporation Data for the Current Year - What Would a Horizontal Analysis Report with Respect to

question 102

Multiple Choice

The Jiffy Corporation data for the current year: $\begin{array}{|l|c|c|}\hline \text { Account } & \text { Current year } & \text { Prior year }\\\hline \text { Current assets } & \$ 72,000 & \$ 60,000 \\\hline \text { A/R } & \$ 49,500 & \$ 45,000 \\\hline \text { Mdse. Inventory } & \$ 56,000 & \$ 40,000 \\\hline \text { Current liabilities } & \$ 63,250 & \$ 55,000 \\\hline \text { Long-term liabilities } & \$ 31,500 & \$ 30,000 \\\hline \text { Common stock (5,000 shares) } & \$ 54,000 & \$ 40,000 \\\hline \text { Retained earnings } & \$ 28,750 & \$ 20,000 \\\hline \text { Net sales revenue } & \$ 565,600 & \$ 505,000 \\\hline \text { COGS } & \$ 454,250 & \$ 395,000 \\\hline \text { Gross Profit } & \$111,350 & \$ 110,000 \\\hline \text { Selling/General expenses } & \$46,800 & \$ 52,000 \\\hline \text { Net income before taxes } & \$ 64,550 & \$ 58,000 \\\hline \text { Income tax expense } & \$ 19,250 & \$ 17,500 \\\hline \text { Net Income } & \$ 45,300&\$40,000\\\hline\end{array}$

- What would a horizontal analysis report with respect to current liabilities?

• A)Current liabilities are 11.18% of total capital.
• B)Current liabilities saw a 15% increase from the prior year to the current year.
• C)The current ratio is 1.14.
• D)Current liabilities saw a 79.05% increase from the prior year to the current year.

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Definitions:

Polygenic Study

Research aimed at understanding traits or conditions that are influenced by multiple genes, in contrast to those determined by a single gene.

Survival Problem

A situation or scenario where an individual or group must overcome obstacles to remain alive, often used in psychology to study decision-making.

Genetic Mutation

A permanent alteration in the DNA sequence that makes up a gene, which can result in a change in the physical traits or health of an organism.

Dominant Gene

A gene that is expressed in the phenotype over a recessive gene when both are present.