In 2018,the Zenon Company reported that property,plant and equipment were equal to 12% of total assets.In 2018,current assets were equal to 88% of total assets.In 2019 the company reported that property,plant and equipment were equal to 28% of total assets.In 2019,current assets were equal to 72% of total assets.What conclusion can be reached from this information?

Question

Quizplus · Accepted Answer

The increase in property, plant, and equipment as a proportion of total assets from 12% to 28% suggests that the company is investing in the future. Additionally, the decrease in current assets as a proportion of total assets from 88% to 72% indicates that the company may be using some of its current assets to invest in long-term assets such as property, plant, and equipment. Therefore, options B and C are correct, and the best choice is D. Option A is not correct since there is no evidence of downsizing provided in the information.

In 2018,the Zenon Company Reported That Property,plant and Equipment Were