Use the table for the question(s)below.
Statement of Financial Position

-If the above statement of financial position is for a retail company,what indications about this company would best be drawn from the changes in the statement of financial position between 2014 and 2015?
A)The company is having difficulties selling its product.
B)The company has reduced its debt.
C)The company has added a major new asset in terms of plant and equipment.
D)The company has experienced a significant rise in its market value.
E)The company has reduced its net working capital.

Question

Use the table for the question(s)below.
Statement of Financial Position
 
-If the above statement of financial position is for a retail company,what indications about this company would best be drawn from the changes in the statement of financial position between 2014 and 2015?
A)The company is having difficulties selling its product. 
B)The company has reduced its debt. 
C)The company has added a major new asset in terms of plant and equipment. 
D)The company has experienced a significant rise in its market value. 
E)The company has reduced its net working capital.

Quizplus · Accepted Answer

The indication that the company is having difficulties selling its product can be drawn if there is an increase in inventory levels or accounts receivable, suggesting that products are not being sold as quickly as expected.

Use the Table for the Question(s)below