Help Presented below is selected data from the financial statements of Trend, Inc. for the current and prior year:12/31/20X212/31/20X1$330,000$220,000Current assetsTotal assets$2,300,000$1,950,000Current liabilities$195,000$180,000Total liabilities$1,190,000$1,180,000Total stockholders' equity$1,110,000$770,000Net sales$5,200,000$3,900,000Cost of Goods Sold$3,800,000$2,690,000Wages expense$953,000$869,000Supplies expense$60,000$50,000Depreciation expense$35,000$32,000Interest expense$12,000$9,000Net income$340,000$250,000A Vertical analysis of the data would show (select all that apply):O A. The current ratio for 20X2 is 1.22.O B. The current ratio for 20X1 is 1.22.O C. Total liabilities were 51.74 % of total assets in 20X2O D.Current assets in 20X2 are 14.35% of total assets

Answered: Presented below is selected data from…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 17E

See similar textbooks

Related questions

Concept explainers

Question

100%

Help

Presented below is selected data from the financial statements of Trend, Inc. for the current and prior year:
12/31/20X2
12/31/20X1
$330,000
$220,000
Current assets
Total assets
$2,300,000
$1,950,000
Current liabilities
$195,000
$180,000
Total liabilities
$1,190,000
$1,180,000
Total stockholders' equity
$1,110,000
$770,000
Net sales
$5,200,000
$3,900,000
Cost of Goods Sold
$3,800,000
$2,690,000
Wages expense
$953,000
$869,000
Supplies expense
$60,000
$50,000
Depreciation expense
$35,000
$32,000
Interest expense
$12,000
$9,000
Net income
$340,000
$250,000
A Vertical analysis of the data would show (select all that apply):
O A. The current ratio for 20X2 is 1.22.
O B. The current ratio for 20X1 is 1.22.
O C. Total liabilities were 51.74 % of total assets in 20X2
O D.Current assets in 20X2 are 14.35% of total assets

Expert Solution

Step 1 Introduction

Current Ratio: It is a liquidity ratio that assesses a company's capacity to pay short-term commitments, such as those that are due within one year of the measurement period. In order to service its current debt and other payables, a corporation must maximise the current assets on its balance sheet, which is explained to investors and analysts in this document.

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions