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:

Evolutionary Biologists

Scientists who study the evolutionary processes that have given rise to the diversity of life on Earth.

Molecular Phylogenies

The use of molecular data to reconstruct the evolutionary relationships between different species or groups.

α

Often represents alpha, a term used in various scientific fields, such as alpha particles in physics, alpha helices in protein structure, or significance levels in statistics.

Cambrian

A geological period approximately 541 million years ago, marked by a rapid increase in the diversity of life forms on Earth, known as the “Cambrian explosion.”