Carl Industries
Carl Industries Has Condensed Balance Sheets as Shown

question 34

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 current assets? 

• A) 78.6%
• B) (27.3%)
• C) (21.4%)
• D) (18.75%)

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Definitions:

Fixed Assets Added

Refers to the purchase or acquisition of physical assets by a company that are expected to be used for longer than one accounting period.

Working Capital Strategy

A business approach focusing on managing a company's operational needs efficiently by balancing current assets and current liabilities to maintain liquidity.

Long-term External Financing

Funding obtained from sources outside the company, typically through issuing equity or long-term debt, intended for periods longer than one year.

Aggressive

An assertive stance or policy in business or investment, typically involving higher risks for the possibility of higher returns.