Max's Tire Center Company

question 90

Multiple Choice

Max's Tire Center Company
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) Fixed assets increased $12,000 or 7.14% during 2012.
• B) Total assets is $500,000 in 2012.
• C) Fixed assets is 27.6% of total assets in 2012.
• D) Fixed assets is 30% of total assets in 2012.

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Definitions:

Marginal Rate

The rate at which a change is made from one level to another, often used in the context of taxes or interest rates.

Indifference Curve

A graph representing combinations of goods or services among which a consumer is indifferent.

Substitution

The process of replacing one good or service with another, often due to changes in relative prices, quality, or availability.

Marginal Rate

A measure of the change in a variable (often cost, revenue, or profit) as it relates to a unit change in another variable.