Use the table for the question$($s$)$ below.

$\backslash$table$[[,,,,,],[\backslash$table$[[$Assets$],[$Current Assets$]],2007,2008,\backslash$table$[[$Liabilities$],[$Current Liabilities$]],2007,2008],[$Cash$,50,46,$Accounts payable,$42,48],[$Accounts receivable,$22,12,$Notes payable$/$short$-$term debt,$7,5],[$Inventories$,17,38,,,],[$Total current assets,$89,96,$Total current liabilities,$49,53],[$Long$-$Term Assets,,,Long$-$Term Liabilities,,$],[\backslash$table$[[$Net property, plant,$],[$and equipment$]],121,116,$Long$-$term debt,$128,136],[$Total long$-$term assets,ts $121,116,$Total long$-$term liabilities,$128,136],[,,,\backslash$table$[[$Total Liabilities$],[$Stockholders$\text{'}$ Equity$]],\backslash$table$[[177],[33]],\backslash$table$[[189],[23]]],[$Total Assets,$210,212,\backslash$table$[[$Total Liabilities and$],[$Stockholders$\text{'}$ Equity$]],210,212]]$

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 has experienced a significant rise in its market value.

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 reduced its debt.

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's net income in $2008$ was negative.

C$)$ The company is selling its property, plant and equipment, which may result in a long$-$term deficiency in production capacity.

D$)$ No conclusions can be drawn regarding stockholders' equity without additional information.

If the above balance sheet is for a retail company, what indications about this company would best be drawn from the changes in quick ratio between $2007$ and $2008?$

A$)$ The risk that the company will experience a cash shortfall in the near future is unchanged.

B$)$ The company has increased the risk that it will experience a cash shortfall in the near future.

C$)$ The company has eliminated the risk that it will experience a cash shortfall in the near future.

D$)$ The company has reduced the risk that it will experience a cash shortfall in the near future.

FIN $360$ : Homework $1$

If the above balance sheet is for a retail company, how has the company's leverage changed between $2007$ and $2008?$

A$)$ The company has experienced a significant increase in its leverage.

B$)$ The company has experienced a significant decrease in its leverage.

C$)$ The company has experienced a very significant decrease in its leverage.

D$)$ The company has experienced no significant change in its leverage.