Max's Tire Center Company

question 2

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 horizontal analysis of Max's balance sheet?

• A) Inventory increased by 19.57% during 2012.
• B) Inventory increased by 26% during 2012.
• C) Inventory is 11.0% of total assets in 2012.
• D) The total assets is $500,000 in 2012.

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Definitions:

Excise Taxes

Taxes applied to the purchase of specific goods or activities, sometimes used to discourage consumption of certain items.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Deadweight Loss

The loss of economic efficiency when the equilibrium in a market is not achieved or is unachievable, leading to a potential loss of social welfare.