Use the table for the question.

Balance Sheet (in billion dollars)

Assets 2007 2008 Liabilities 2007 2008

Current Assets Current Liabilities

Cash 50 46 Accounts payable 42 48

Accounts receivable 22 12 Notes payable/short-term debt 7 5

Inventories 17 38

Total current assets 89 96 Total current liabilities 49 53

Long-Term Assets Long-Term Liabilities

Net property, plant,

and equipment 121 116 Long-term debt 128 136

Total long-term assets 121 116 Total long-term liabilities 128 136

Total Liabilities 177 189

Stockholders' Equity 33 23

Total Assets 210 212 Total Liabilities and 210 212

Stockholders' Equity

If the above balance sheet is for a retail company, how has the company's leverage (book debt to equity ratio) changed between 2007 and 2008?

A. The company has experienced a significant increase in its leverage.

B. The company has experienced a significant decrease in its leverage.

C. The company has experienced no significant change in its leverage.

D. There is no sufficient information about change in leverage.