The Following Is Summary of Information Presented on the Financial

question 49

Multiple Choice

The following is summary of information presented on the financial statements of a company on December 31,2019. $$\begin{array} { | l | r | r | } \hline { \text { Account } } & { \mathbf { 2 0 1 9 } } & { \mathbf { 2 0 1 8 } } \\\hline \text { Current Assets } & \$ 70,000 & \$ 52,000 \\\hline \text { Accounts Receivable } & 81,000 & 75,000 \\\hline \text { Merchandise Inventory } & 54,000 & 44,000 \\\hline \text { Current Liabilities } & 78,000 & 47,000 \\\hline \text { Long-term Liabilities } & 30,000 & 52,000 \\\hline \text { Common Stock } & 52,000 & 45,000 \\\hline \text { Retained Earnings } & 45,000 & 27,000 \\\hline & & \\\hline \text { Net Sales Revenue } & \$ 529,000 & \$ 502,000 \\\hline \text { Cost of Goods Sold } & \underline { 402,000 } & \underline { 402,000 } \\\hline \text { Gross Profit } & \$ 127,000 & \$ 100,000 \\\hline \text { Selling Expenses } & \underline { 49,000 } & \underline { 51,000 } \\\hline \text { Net Income Before Income Tax Expense } & \$ 78,000 & \$ 49,000 \\\hline \text { Income Tax Expense } & \underline { 24,000 } & \$ 16,800 \\\hline \text { Net Income } & \underline { \$ 54,000 } & \underline { \$ 32,200 } \\\hline\end{array}$$ With respect to current liabilities,a horizontal analysis reveals ________.(Round your answer to two decimal places.)

• A) that current liabilities are 38.05% of total equity
• B) a 65.96% increase in current liabilities
• C) a current ratio of 0.90
• D) a 39.74% increase in current liabilities

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Definitions:

Retaliation

The act of returning an attack or counteracting an action with the intent to harm or penalize in response to a grievance.

Physical Violence

The use of force with the intention of causing harm, injury, or physical pain to others.

Gender Roles

The cultural standards that dictate the behaviors deemed suitable, fitting, or wanted for individuals, depending on their real or perceived gender or sex.