Below Is Selected Information from Marker's 2012 Financial Statements $\text { Selected Income Statement Data - for the year ending December 31, 2012: }$

question 37

Multiple Choice

Below is selected information from Marker's 2012 financial statements:
$\begin{array}{lrr}&\text { As of Dec.31, } 2012&\text { Dec. 31, } 2011\\\text { Cash and short-term investments } & \$ 958,245 & \$ 745,800 \\\text { Accounts Receivable (net) } & 125,850 & 135,400 \\\text { nventories } & 195,650 & 175,840 \\\text { Prepaid Expenses and other current assets } & 45,300 & 30,860\\{\text { Total CurrentAssets }} & \$ 1,325,045 & \$ 1,087,900 \\\text { Plant, Property and Equipment, net } & 1,478,320 & 1,358,700 \\\text { Intangible Assets } & 125,600 & 120,400 \\\text { Total Assets }& \$ 2,928,965&\$ 2,567,000 \\\\ \\\text { Short-term borrowings } & \$ 25,190 & \$ 3,108 \\\text { Current portion of long-term debt } & 45,000 & 40,000 \\\text { Accounts payable } & 285,400 & 325,900 \\\text { Accrued liabilities } & 916,722 & 705,89 \\\text { ncome taxes payable } & 125,400 & 115,600\\\text { Total Current Liabilities } & \$ 1,397,712 & \$ 1,225,499 \\\text { Long-term Debt } & 450,000 & 430,000 \\\text { Total Liabilities } & \$ 1,847,712 & \$ 1,655,499 \\\text { Shareholders' Equity } & \$ 1,081,253 & \$ 911,501\\\text { Total Liabilities and Shareholders' Equity}&\$ 2,928,965 & \$ 2,567,000 \\\end{array}$


$\text { Selected Income Statement Data - for the year ending December 31, 2012: }$
$\begin{array}{l}\begin{array}{l}\text { Net Sales } \\\text { Cost of Goods Sold } \\\text { Operating Income }\\\text { Net Income }\end{array}\begin{array}{r}\$ 3,210,645 \\(2,310,210) \\\$ 900,435\\\$ 324,850\end{array}\end{array}$


$\text { Selected Statement of Cash Flow Data - for the year ending December } 31,2012 \text { : }$
$\begin{array}{l}\begin{array}{lll}\text {Cash Flows from Operations }\\\text {interest Expense }\\\text {Income Tax Expense}\end{array}\begin{array}{lll}\$ 584,750 \\42,400 \\114,200\end{array}\end{array}$
-Marker's 2012 Liabilities to Shareholders' Equity ratio is:

• A) 100.0%
• B) 170.9%
• C) 63.1%
• D) 129.3%

---

Definitions:

Short Run

A period during which at least one input, such as plant size, is fixed and cannot be varied.

Marginal Decision Rule

The principle of making decisions based on the additional cost vs. additional benefit of the next unit.

MC < MR

This indicates a scenario in economic theory where the marginal cost of producing an additional unit is less than the marginal revenue gained from selling that unit.

Monopolistic Competition

A market structure characterized by many firms selling similar but not identical products, allowing for some degree of market power and product differentiation.