Use the table for the question(s)below.
-If the above balance sheet is for a retail company, what indications about this company would best be drawn from the changes in the balance sheet between 2017 and 2018?
A)The company has reduced its debt.
B)The company has added a major new asset in terms of plant and equipment.
C)The company is having difficulties selling its product.
D)The company has experienced a significant rise in its market value.

Question

Use the table for the question(s)below. 
-If the above balance sheet is for a retail company, what indications about this company would best be drawn from the changes in the balance sheet between 2017 and 2018?
A)The company has reduced its debt. 
B)The company has added a major new asset in terms of plant and equipment. 
C)The company is having difficulties selling its product. 
D)The company has experienced a significant rise in its market value.

Quizplus · Accepted Answer

If the inventory levels have increased significantly from 2017 to 2018, it may indicate that the company is having difficulties selling its product, leading to unsold stock.

Use the Table for the Question(s)below