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

question 111

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 long-term liabilities?

• A)Long-term liabilities decreased by $1,500.
• B)Long-term liabilities decreased by 5.57%.
• C)Long-term liabilities increased by 8.21%.
• D)Long-term liabilities increased by $1,500.

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Definitions:

Proximity

The physical or psychological closeness between people, objects, or ideas, often influencing relationships and interactions.

Moon Illusion

The optical illusion where the Moon appears larger when it is close to the horizon than when it is high in the sky.

Horizon

The line at which the earth's surface and the sky appear to meet, or the limit of one's knowledge, experience, or interest.

Cultural Experience

The exposure and participation in practices, beliefs, art, and customs characteristic of a particular group or society.