The McCumber Corporation data for the current year:

Account Current year Prior year
Cash $76,200 $60,000
A/R $59,400 $44,000
Mdse. Inventory $51,200 $40,000
Current liabilities $82,500 $55,000
Long-term liabilities $38,000 $30,000
Common stock (5,000 shares) $47,880 $42,000
Retained earnings $18,420 $17,000
Net sales revenue $618,000 $515,000
COGS $478,140 $385,000
Gross Profit $139,860 $130,000
Selling/General expenses $47,860 $50,000
Net income before taxes $92,000 $80,000
Income tax expense $23,000 $20,000
Net Income $69,000 $60,000

With respect to current liabilities, what would a horizontal analysis report?
A) The current ratio is 0.92.
B) Current liabilities are 13.35% of total capital.
C) Current liabilities saw a 50% increase from the prior year to the current year.
D) Current liabilities saw a 66.67% increase from the prior year to the current year.

C
Explanation: C)
Current liabilities prior yr. $55,000
Current liabilities current 82,500
Increase 27,500 / 55,000 = 50%