4

The following is summary of information presented on the financial statements of ABC Company on December 31, 2015. Account Current Assets Accounts Receivable Merchandise Inventory Current Liabilities Long-term Liabilities Common Stock Retained Earings 2015 $65,000 80,000 50,000 75,000 30,000 50,000 40,000 2014 $50,000 75,000 40,000 50,000 50,000 40,000 25,000 Net Sales Revenue Cost of Goods Sold Gross Profit Selling Expenses Net income before income tax experte Income tax expense Net Income $525,000 400.000 $125,000 45000 $80,000 24 000 $56.000 $500,000 395,000 $105,000 50,000 $55,000 16.500 $38.500 What would a horizontal analysis report show for current liabilities? current liabilities are 38,46% of total capital a 33.33% increase in current liabilities a a current ratio of .87 a 50.00% increase in current liabilities