Max's Tire Center Company
Selected Data from the Financial

question 43

Multiple Choice

Max's Tire Center Company
Selected data from the financial statements of Max's Tire Center are provided below.
$\begin{array}{lcc}&2012&2011\\\text { Total stockholders' equity } & \$ 350,000 & \$ 278,000 \\\text { Current liabilities } & 45,000 & 42,000 \\\text { Total liabilities \& stockholders' equity } & 500,000 & 490,000 \\\text { Cash flow from operations } & 350,000 & 290,000 \\\text { Net sales } & 370,000 & 360,000 \\\text { Capital expenditures } & 150,000 & 130,000\end{array}$
-Refer to the selected data provided for Max's Tire Center. Which of the following would result from a horizontal analysis of Max's total stockholders' equity in 2012?

• A) Total stockholders' equity increased $72,000 or 25.9% during 2012.
• B) Total stockholders' equity increased $72,000 or 29.5% during 2012.
• C) Total stockholders' equity is 70.0% of total assets in 2012.
• D) Total liabilities & stockholders' equity is $500,000 in 2012.

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