Retained earnmings w 9,187 Total common equity $32,813 $26,250 Total assets $43,750 $35,000 Total liabilities and equity $43,750 $35,000 Given the information in the preceding balance sheetand assuming that Blue Hamster Manufacturing Inc. has 50 million shares of common stock outstandingread each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet. Statement #1: Blue Hamster's accumulated owed financial obligations decreased from Year 1 to Year 2. This statement is v |, because: () Long-term debt decreased from $2,324 million at the end of Year 1 to $2,187 million by the end of Year 2. () Motes payable actually increased from $2,324 million to $2,187 million between Years 1 and 2. (O Accruals actually increased from $0 in Year 1 to $410 million at the end of Year 2. Statement #2: On December 31 of Year 2, Blue Hamster Manufacturing Inc. had $8,072 million of actual money that it could have spent immediately. This statement is |, because: () The funds recorded in Blue Hamster's accounts receivable account represents funds that are either cash or can be converted into cash almost immediately. () Blue Hamster's Year 2 cash and equivalents balance is $20,217 million. () The funds recorded in Blue Hamster's cash and equivalents account represents funds that are either cash or can be converted into cash almost immediately. Statement #3: The book value per share of Blue Hamster's stock in Year 2 was $656.26. This statement is w , because: () The per-share book value is calculated by dividing the company's total assets by the number of outstanding shares of commen stock. () The per-share book value is calculated by dividing the company's total common equity by the number of outstanding shares of common stock. () The per-share book value is calculated by dividing the company's total debt by the number of outstanding shares of common stock. Based on your understanding of the different items reported on the balance sheet and the information they provide, if everything else remains the same, then the cash and equivalents item on the current balance sheet is likely to w if the firm buys a new plant and equipment Continue without saving at a cost of $1 million with liquid capital. 2. Balance sheet The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance. Blue Hamster Manufacturing Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Blue Hamster Manufacturing Inc. Balance Shest for Year Ending December 31 (Millions of Dollars) Assets Current assets: Cash and equivalents Accounts receivable Inventories Total current assets Net fixed assets: Net plant and equipment Year 2 2,953 8,662 $19,687 Year 1 $6,457 2,363 6,930 $15,750 $19,250 Liahilities and equity Current liabilities: Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total debt Common equity: Common stock Year 2 $0 410 2,324 8,203 $10,937 21,328 Year 1 0 2,187 $2,187 6,563 8,750 17,063