Carl Industries
Carl Industries Has Condensed Balance Sheets as Shown

question 96

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 percentage change balance sheet over the period of 2009 to 2011,what is the change in long-term liabilities? 

• A) 94.7%
• B) 15.4%
• C) 5.3%
• D) 5%

---

Definitions:

Pay Cut

A pay cut is a reduction in an employee’s salary or wages, often implemented by employers to reduce costs during financial hardships or organizational restructuring.

Imports

Goods and services bought from foreign countries for domestic consumption or use.

Rate of Inflation

The measurement of how rapidly the general price level of goods and services escalates, which in turn, reduces the purchasing strength.

Unemployment Rate

The ratio of individuals in the labor force who are without a job and actively seeking employment.