Hansel Corporation's Condensed Balance Sheets Appear Below -In a Common Size Balance Sheet for 2012,total Liabilities and Year)

question 103

Multiple Choice

Hansel Corporation's condensed balance sheets appear below:
$\begin{array}{lrrr}&&&\text { (Base Year) }\\&2014&2013&2012\\\text { Assets: }\\\text { Current assets } & \$ 55,000 & \$ 56,500 & \$ 70,000 \\\text { Plant \& equipment, net } & 495,000 & 410,000 & 440,000 \\\text { Intangible assets, net } & 20,000 & 27,500 & 40,000\\\text { Total assets }&\$570,000&\$494,000&\$550,000\\\\\text { Liabilities \& Stockholders' Equity: }\\\text { Current liabilities } & \$ 40,000 & \$ 35,000 & \$ 32,500 \\\text { Long-term liabilities } & 395,000 & 310,000 & 375,000 \\\text { Stockholders' equity } & 135,000 & 149,000 & 142,500 \\\text { Total liabilities \& equity }&\$570,000&\$494,000&\$550,000\end{array}$
-In a common size balance sheet for 2012,total liabilities and equity are expressed as

• A)89.9%
• B)96.5%
• C)100.0%
• D)111.3%

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Definitions:

Security Interest

A legal claim or right granted by a borrower to a lender over the borrower's assets as collateral for a loan.

Security Interest

A legal claim on assets granted to a creditor to secure a loan, ensuring priority payment in the event of the debtor's default.

Personal Property

Movable assets or belongings that are not attached to or associated with real estate.

Payment

The transfer of money, goods, or services from one party to another as a fulfillment of an obligation.