Use the table for the question(s) below.
Balance Sheet
Net property, plant,

-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 2007 and 2008?
A) The company is having difficulties selling its product.
B) The company has reduced its debt.
C) The company has added a major new asset in terms of plant and equipment.
D) The company has experienced a significant rise in its market value.

Question

Use the table for the question(s) below.
Balance Sheet
   Net property, plant,
 
-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 2007 and 2008?
A) The company is having difficulties selling its product. 
B) The company has reduced its debt. 
C) The company has added a major new asset in terms of plant and equipment. 
D) The company has experienced a significant rise in its market value.

Quizplus · Accepted Answer

If the balance sheet shows an increase in inventory or accounts receivable, it may indicate that the company is having difficulties selling its product, as it suggests that products are not being sold as quickly as they are being produced or purchased.

Use the Table for the Question(s) Below