In 2016, the Zenon Company reported that property, plant and equipment were equal to 13% of total assets. In 2016, current assets were equal to 87% of total assets. In 2017 the company reported that property, plant and equipment were equal to 28% of total assets. In 2017, current assets were equal to 72% of total assets. What conclusion can be reached from this information?
A)In 2017, the company is downsizing.
B)In 2017, property, plant and equipment as a proportion of total assets increased.
C)In 2017, the company is investing in the future.
D)B and C.

Question

Quizplus · Accepted Answer

In 2017, property, plant and equipment as a proportion of total assets increased (from 13% to 28%). This suggests that the company is investing in the future.

In 2016, the Zenon Company Reported That Property, Plant and Equipment