Carl Industries
Carl Industries Has Condensed Balance Sheets as Shown

question 40

Multiple Choice

Carl Industries
Carl Industries has condensed balance sheets as shown:
$\begin{array}{|l|r|r|r}\hline & {\mathbf{2 0 1 1}} & {\mathbf{2 0 1 0}} & {\mathbf{2 0 0 9}} \\\hline \text { Assets: } & & & \\\hline \text { Current assets } & 65,000 & \$ 46,500 & \$ 80,000 \\\hline \text { Plant \& equipment, net } & 600,000 & 420,000 & 410,000 \\\hline \text { Intangible assets, net } & 15,000 & 36,500 & 50,000 \\\hline \text { Total assets } & 680,000 & \$ 503,000 & 540,000 \\\hline & & & \\\hline \text { Liabilities \& Stockholders' Equity: } & & & \\\hline \text { Current liabilities } & \$ 70,000 & \$ 25,000 & \$ 33,500 \\\hline \text { Long-term liabilities } & 420,000 & 290,000 & 400,000 \\\hline \text { Stockholders' equity } & 190,000 & 188,000 & 106,500 \\\hline \text { Total liabilities \& equity } & \$ 680,000 & \$ 503,000 & 540,000 \\\hline\end{array}$

-Refer to the information for Carl Industries.In a common size balance sheet for 2009,total liabilities and equity are expressed as: 

• A) 25.9%
• B) 100%
• C) 74.1%
• D) 103.6%

---

Definitions:

Reactive

describes a response or action that is taken as a result of an external stimulus, rather than initiated by proactive planning.

Proactive

Pertains to taking initiative and acting in anticipation of future problems or needs.

Innovation Strategy

A plan or approach designed to encourage and manage new ideas, products, or methodologies within an organization to drive growth and competitive advantage.

Government Scrutiny

Government scrutiny involves the close examination and oversight by governmental bodies of activities within various sectors to ensure legality, ethics, and compliance with standards and regulations.