Use the Table for the Question(s) Below -
If the Above Balance Sheet Is for a Retail

Multiple Choice

Use the table for the question(s) below.
$\begin{array} { l } \text {Balance Sheet }\\\begin{array}{lll}\text { Assets } & \text { 2011 } & 2012 \\\text { Current Assets } & & \\\hline\text { Cash } & 50 & 46 \\\text { Accounts receivable } & 22 & 12 \\\text { Inventories } & 17 & 38 \\\text { Total current assets } & 89 & 96\end{array}&\begin{array}{lll}\text { Liabilities } & 2011 & 2012 \\\text { Current Liabilities } & & \\\hline \text { Accounts payable } & 42 & 48 \\\text { Notes payable/short-term debt } & 7 & 5 \\\\\text { Total current liabilities } & 49 & 53\\\end{array}\\\\\begin{array}{lll} \text { Long-Term Assets}\\\hline \text { Net property, plant,}\\\text { and equipment } & 121 & 116 \\ \text { Total long-term assets } & 121 & 116\\\\\\\text { Total Assets}&210&212\\\end{array}&\begin{array}{l}\text { Long-Term Liabilities }\\\hline\text { Long-term debt } & 128 & 136 \\\text { Total long-term liabilities } & 128 & 136 \\\text { Total Liabilities } & \mathbf{1 7 7} & 189 \\\text { Shareholders' Equity } & 33 & 23 \\\text { Total Liabilities and } & 210 & 212 \\\text { Shareholders' Equity } & &\end{array}\end{array}$

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If the above balance sheet is for a retail company, what indications about this company would best be drawn from the changes in the balance sheet between 2011 and 2012?

A) The company has experienced a significant rise in its market value.
B) The company has added a major new asset in terms of plant and equipment.
C) The company has reduced its debt.
D) The company is having difficulties selling its product.