Max's Tire Center

question 5

Multiple Choice

Max's Tire Center
Selected data from the financial statements of Max's Tire Center are provided below.

-Refer to the selected data provided for Max's Tire Center. Which of the following would result from a vertical analysis of Max's balance sheet in 2012?

• A) Total liabilities increased 8.7% during 2012.
• B) The total of liabilities & equity is $500,000 in 2012.
• C) Total liabilities is 27.6% of total assets in 2012.
• D) Total liabilities is 30% of total liabilities & equity in 2012.

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Definitions:

Quantity Supplied

The sum total of a product or service that manufacturers are ready and capable of offering for sale at a particular price during a defined timeframe.

Oropharynx

The middle part of the throat behind the mouth, which includes the back one-third of the tongue, tonsils, and soft palate.

Nasopharynx

The upper part of the throat located behind the nose, an area that connects the nasal cavity to the throat and plays a role in respiration and speech.

Hypopharynx

The lower part of the pharynx that sits behind the larynx and connects to the esophagus, involved in the passage of food and air.