Fred's Car Repair Service
Selected Data from the Financial

question 102

Multiple Choice

Fred's Car Repair Service
Selected data from the financial statements of Fred's Car Repair Service are provided below.
$\begin{array}{lcc}&2012&2011\\\text { Total stockholders' equity } & \$ 350,000 & \$ 265,000 \\\text { Current liabilities } & 75,000 & 72,000 \\\text { Total liabilities \& stockholders' equity } & 600,000 & 590,000 \\\text { Cash flow from operations } & 250,000 & 190,000 \\\text { Net sales } & 570,000 & 560,000 \\\text { Capital expenditures } & 110,000 & 60,000\end{array}$
-Refer to the selected data provided for Fred's Car Repair Service. Which of the following would result from a horizontal analysis of Fred's total stockholders' equity in 2012?

• A) Total stockholders' equity is 45.0% of total liabilities and stockholders' equity in 2012.
• B) Total stockholders' equity increased $85,000 or 32.08% during 2012.
• C) Total stockholders' equity is 50.0% of total assets in 2012.
• D) Total liabilities & stockholders' equity increased by $85,000 in 2012.

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Definitions:

Position

Refers to a brand's or product's unique standing and identity in the marketplace relative to its competitors.

Consumers

Individuals or organizations that use economic services or commodities.

Dumping

the practice of exporting goods to another country at a price below the normal charge in the home market, often considered unfair competition.

Market Share

The share of a market dominated by a specific company or product, typically represented as a percent of the overall sales within that market.