The Tarboro Corporation data for the current year and prior year is as follows:

Account	Current year	Prior year
Current assets	$75,600	$60,000
A/R	$59,400	$44,000
Mdse. Inventory	$51,200	$40,000
Current liabilities	$72,500	$56,000
Long term liabilities	$35,000	$29,000
Common stock (5,000 shares)	$47,460	$42,000
Retained earnings	$31,240	$17,000
Net sales revenue	$607,700	$515,000
COGS	$469,700	$385,000
Gross Profit	$138,000	$130,000
Selling/General expenses	$49,080	$52,000
Net income before taxes	$88,920	$78,000
Income tax expense	$20,520	$18,000
Net Income	$68,400	$60,000

What would a horizontal analysis report with respect to long

term liabilities?

Question content area bottom

Part 1

A.

Long

term liabilities increased by

17.14%.

B.

Long

term liabilities increased by

$6,000.

C.

Long

term liabilities decreased by

$16,500.

D.

Long

term liabilities decreased by

29.46%