The following is summary of information presented on the financial statements of a company on December 31,2019.

\begin{array} { | l | r | r | } \hline { \text { Account } } & { \mathbf { 2 0 1 9 } } & { \mathbf { 2 0 1 8 } } \\\hline \text { Current Assets } & \$ 70,000 & \$ 52,000 \\\hline \text { Accounts Receivable } & 81,000 & 75,000 \\\hline \text { Merchandise Inventory } & 54,000 & 44,000 \\\hline \text { Current Liabilities } & 78,000 & 47,000 \\\hline \text { Long-term Liabilities } & 30,000 & 52,000 \\\hline \text { Common Stock } & 52,000 & 45,000 \\\hline \text { Retained Earnings } & 45,000 & 27,000 \\\hline & & \\\hline \text { Net Sales Revenue } & \$ 529,000 & \$ 502,000 \\\hline \text { Cost of Goods Sold } & \underline { 402,000 } & \underline { 402,000 } \\\hline \text { Gross Profit } & \$ 127,000 & \$ 100,000 \\\hline \text { Selling Expenses } & \underline { 49,000 } & \underline { 51,000 } \\\hline \text { Net Income Before Income Tax Expense } & \$ 78,000 & \$ 49,000 \\\hline \text { Income Tax Expense } & \underline { 24,000 } & \$ 16,800 \\\hline \text { Net Income } & \underline { \$ 54,000 } & \underline { \$ 32,200 } \\\hline\end{array}

With respect to current liabilities,a horizontal analysis reveals ________.(Round your answer to two decimal places.)
A) that current liabilities are 38.05% of total equity
B) a 65.96% increase in current liabilities
C) a current ratio of 0.90
D) a 39.74% increase in current liabilities

A Summary of Significant Accounting Policies and Explanations of Specific

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