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

question 92

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 common stock?

• A)Stockholder's equity as 9.55% of total capital
• B)Sales return of $8.10
• C)74.07% increase from prior to current year of cost of goods sold
• D)Increase of $14,000 in common stock

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Definitions:

Analytics

The systematic computational analysis of data or statistics, used for the discovery, interpretation, and communication of meaningful patterns in data.

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The process of selecting a course of action from several alternatives to achieve a desired outcome.

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An approach to making managerial decisions and organizational practices grounded in the best available scientific evidence.

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