RUFF 5ANDPAPER CO -The Smallest Use of Funds for the Firm in 2003

question 11

Multiple Choice

RUFF 5ANDPAPER CO.
Balance Sheets
For the Years Ended 2002 and 2003

$\begin{array}{lrr}&2003&2002\\\hline\text { Assets }\text { Cash } & 800 & 600 \\\text { Marketable securities } & 200 & 200 \\\text { Accounts receivable } & 1,200 & 1,000 \\\text { Inventories } & 2,000 & 1,800 \\\text { Gross fixed asset } & 3,000 & 2,800\\\text { Less Accumulated amortization }&1,000&800\\\text { Net fixed assets }&2,000&2,000\\&---&---\\\text { Total assets }&6,200&5,600\\\\\text { Liabilities }\\\text { Accounts payable } & 200 & 100 \\\text { Notes payable } & 800 & 900 \\\text { Accruals } & 100 & 100 \\\text { Long-term debt } & 2,000 & 1,500\\\text { Stockholders' equity }\\\text { Common stock } & 2,500 & 2,500 \\\text { Retained eamings } & 600 & 500\\&---&----\\\text { Total liabilities and equity }&6,200&5,600\end{array}$
-The smallest use of funds for the firm in 2003 is

• A) a decrease in long-term debts.
• B) a decrease in notes payable.
• C) dividends.
• D) an increase in inventory.

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Definitions:

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An organization founded in 1874 in the United States that advocated for prohibition and tackled various social issues from a Christian perspective.

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A region in the United States comprising states located in the central part of the country, known for its agricultural and industrial output.

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A national federation of labor unions in the United States founded in 1886, aimed at organizing workers to achieve better working conditions and wages.

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