This test: 50 pts possible The following is a summary of information presented on the financial statements of The Cake Company on December 31, 2021. (Click the icon to vie summary of financial statements.) What would a horizontal analysis report with respect to current liabilities show? Round values to two decimal places OA. a current ratio of 0.87 Summary of financial statements OB. a 33.33% increase in current liabilities OC. that current liabilities are 38.46% of total capital OD. a 50.00% increase in current liabilities Click to select your answer. Account Current assets Accounts receivable Merchandise inventory Current liabilities Long-term liabilities Common shares Retained earnings Net sales revenue Cost of goods sold Gross margin 2021 $65,000 2020 $50.000 80 000 75,000 50,000 40,000 75,000 50,000 30.000 50.000 50.000 40.000 40.000 25.000 $525,000 $500,000 400,000 395,000 $125,000 $105,000 Selling and general expenses 45,000 50.000 Net income before income tax expense $80,000 $55.000 Income tax expense Net income 24.000 16.500 $56.000 $38.500 Print Done The following is a summary of information presented on the financial statements of The Cake Company on December 31, 2021. (Click th on to view the summary of financial statements.) What would a izontal analysis report with respect to current liabilities show? Round values to two decimal places. A. a current ratio of 0.87 B. a 33.33% increase in current liabilities C. that current liabilities are 38.46% of total capital OD. a 50.00% increase in current liabilities lities of total capital lities Summary of financial statements X Account 2021 2020 Current assets $65,000 $50,000 Accounts receivable 80,000 75,000 Merchandise inventory 50,000 40,000 Current liabilities 75,000 50,000 Long-term liabilities 30,000 50,000 Common shares Retained earnings 50,000 40,000 40,000 25,000 Net sales revenue Cost of goods sold Gross margin $525,000 $500,000 400,000 395,000 $125,000 $105,000 Selling and general expenses 45,000 50,000 Net income before income tax expense $80,000 $55,000 24,000 16,500 Income tax expense Net income Print Done $56,000 $38,500