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 stockholders' equity between 2007 and 2008?
A) The company is very profitable because it is obviously collecting receivables faster.
B) The company is selling its property, plant and equipment, which may result in a long-term deficiency in production capacity.
C) The company's net income in 2008 was negative.
D) No conclusions can be drawn regarding stockholders' equity without additional information.

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 stockholders' equity between 2007 and 2008?
A) The company is very profitable because it is obviously collecting receivables faster. 
B) The company is selling its property, plant and equipment, which may result in a long-term deficiency in production capacity. 
C) The company's net income in 2008 was negative. 
D) No conclusions can be drawn regarding stockholders' equity without additional information.

Quizplus · Accepted Answer

The changes in stockholders' equity indicate a decrease from $200,000 in 2007 to -$100,000 in 2008, which suggests that the company had a net loss in 2008.

Use the Table for the Question(s) Below