Max's Tire Center
Selected Data from the Financial Statements

Max's Tire Center
Selected data from the financial statements of Max's Tire Center are provided below.
$\begin{array}{lcc}&\underline{2012}&\underline{2011}\\\text { Total liabilities } & \$ 150,000 & \$ 138,000 \\\text { Current liabilities } & 45,000 & 42,000 \\\text { Total liabilities \& equity } & 500,000 & 490,000 \\\text { Cash flow from operations } & 160,000 & 90,000 \\\text { Net sales } & 370,000 & 360,000 \\\text { Capital expenditures } & 80,000 & 30,000\end{array}$
-Refer to the selected data provided for Max's Tire Center. Which of the following would result from a horizontal analysis of Max's balance sheet?

A) Total liabilities increased 8.7% during 2012.
B) Total liabilities increased 7.8% during 2012.
C) Total liabilities is 30% of total assets in 2012.
D) The total of liabilities & equity is $500,000 in 2012.