Presented below is selected data from the financial statements of Trend, Inc. for the current and prior year: 12/31/20X2 12/31/20X1 Current assets $330,000 $220,000 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): A. The current ratio for 20X2 is 1.22. OB. Current assets in 20X2 are 14.35% of total assets. OC. The current ratio for 20X1 is 1.22. OD. Total liabilities were 51.74 % of total assets in 20X2

Presented below is selected data from the financial statements of Trend, Inc. for the current and prior year: 12/31/20X2 12/31/20X1 Current assets $330,000 $220,000 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): A. The current ratio for 20X2 is 1.22. OB. Current assets in 20X2 are 14.35% of total assets. OC. The current ratio for 20X1 is 1.22. OD. Total liabilities were 51.74 % of total assets in 20X2

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

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