why is the right answer C? for Q16. thank you.

Use the table for the question(s) below. 15) 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. Answer: A Diff: 2 Var: 1 Skill: Analytical AACSB Objective: Analytic Skills 16) 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 Answer: C