- The Following Is A Summary Of Information Presented On The Financial Statements Of A Company On 31 December 2020 Accoun 1 (116.21 KiB) Viewed 50 times
The following is a summary of information presented on the financial statements of a
company on 31 December 2020. Account 2020 2019 Current assets $68,000 $52,000 Accounts receivable 84,000 80,000 Inventory 52,000 41,000 Current liabilities 76,000 49,000 Non-current liabilities 32,000 55,000 51,000 42,000 Share capital Retained earnings 45,000 27,000 Sales revenue $526,000$501,000 Cost of sales 402,000 400,000 Gross profit $124,000$101,000 Selling expenses 47,000 51,000 $77,000 $50,000 Profit before income tax Income tax expense 24,000 $16,900 Profit $53,000 $33,100 What would a horizontal analysis report show with respect to Current liabilities? Select one: O a. a 35.53% increase in Current Liabilities O b. Current Liabilities are 37.25% of total capital. O c. a 55.1% increase in Current Liabilities O d. a current ratio of 0.89