4.

The following is a summary of information presented on the financial statements of a company on December 31, 2019. Account 2019 2018 Current Assets $86,000 $80,000 Accounts Receivable 87,000 68.000 Merchandise Inventory 66.000 57,000 Current Liabilities 57.000 48,000 Long-term Liabilities 44,000 52,000 Common Stock 73,000 58,000 Retained Earnings 65,000 47,000 With respect to long - term liabilities, a horizontal analysis reveals O A. long-term liabilities decreased by $15,000 O B. long-term liabilities decreased by 25.86% O C. long-term liabilities decreased by $9,000 O D. long-term liabilities decreased by 15.38%The vertical analysis of the income statement of Bates, Inc. is as shown below: Bates, Inc. Comparative Income Statement Years Ended December 31, 2019 and 2018 Bates, Inc. Comparative Income Statement Years Ended December 31, 2019 and 2018 Percent of Percent of (In millions) 2019 Total 2018 Total Net Sales 56,355 100.0% 54,920 100.0% Cost of Goods Sold 3,370 53.0 2,200 44.7 Gross Profit 2,985 47.0 2,720 55.3 Operating Expenses: Selling Expenses 675 10.6 580 11.8 Administrative Expenses 410 6.5 425 8.6 Total Operating Expenses 1,085 17.1 1,005 20.4 Operating Income 1,900 29.9 1,715 34.9 Other Income and (Expenses): Interest Expense (400) (6.3) (695 (14.1) Total Other Income and (Expenses) (400) (6.3) (695 (14.1) Income Before Income Taxes 1,500 23.6 1,020 20.7 Income Tax Expense 230 3.6 210 4.3 Net Income $1,270 20.0% $810 16.5% The figure 47.0% shown for gross profit in 2019 signifies that the gross profit is O A. increased by 47.0% over the previous year O B. equal to 47.0% of net income O C. 47.0% of net sales revenue O D. 47.0% of cost of goods soldThe financial statements for Barrington Service Company include the following items: 2019 2018 Cash $44,500 $50,000 Short - term Investments 33,000 19.000 Net Accounts Receivable 54.000 52,000 Merchandise Inventory 156,000 52,000 Total Assets 530,000 552,000 Accounts Payable 133,500 128,000 Salaries Payable 17,000 17,000 Long-term Note Payable 54,000 51,000 Compute the current ratio for 2018. (Round answer to two decimal places.) O A. 0.84 O B. 6.49 O C. 3.81 OD. 1.19The financial statements for Silver Service Company include the following items: 2019 2018 Cash 543,500 548,000 Short - term Investments 25,000 11,500 Net Accounts Receivable 62,000 46,000 Merchandise Inventory 129,000 46.000 Total Assets 529,000 554,000 Accounts Payable 130.500 126,000 Salaries Payable 23,000 22,000 Long-term Note Payable 56,000 57.000 Compute the acid - test ratio for 2018. (Round your answer to two decimal places) O A. 0.84 O B. 0.85 O C. 0.71 O D. 0.64