Problem
The Stemple Corporation data for the current year:
|
Account
|
Current year
|
Prior year
|
|
Current assets
|
$ 57 comma 240$57,240
|
?$42,000
|
|
?A/R
|
?$73,800
|
?$60,000
|
|
Mdse. Inventory
|
?$67,500
|
?$50,000
|
|
Current liabilities
|
$ 47 comma 400$47,400
|
?$30,000
|
|
Longminus-term liabilities
|
?$26,600
|
?$28,000
|
|
Common stock? (5,000 shares)
|
?$41,000
|
?$35,000
|
|
Retained earnings
|
?$83,540
|
?$59,000
|
|
Net sales revenue
|
?$595,000
|
?$500,000
|
|
COGS
|
?$480,000
|
?$400,000
|
|
Gross Profit
|
?$115,000
|
?$100,000
|
|
?Selling/General expenses
|
?$44,000
|
?$50,000
|
|
Net income before taxes
|
?$71,000
|
?$50,000
|
|
Income tax expense
|
?$16,500
|
?$15,000
|
|
Net Income
|
?$54,500
|
?$35,000
|
What would a horizontal analysis report with respect to current assets? show?