2. Balance sheet The balance sheet provides a snapshot of the financlal condition of a company. Investors and analysts use the Information given on the balance sheet and other financlal statements to make several interpretations regarding the company's financial condition and performance. Green Caterpillar Garden Supplles 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 glven to complete the balance sheet. Glven the information in the preceding balance sheet-and assuming that Green Caterplllar Garden Supplies Inc. has 50 million shares of common stock outstanding-read each of the following statements, then identify the selection that best interprets the Information conveyed by the balance sheet. Statement \# 1: Green Caterplllar's pool of relatlvely llquid assets, which are avallable to support the company's current and future sales, decreased from Year 1 to Year 2. This statement is, because: Green Caterpillar's total current llablities balance decreased by $3,937 million between Year 1 and Year 2 Green Caterpillar's total current asset balance actually increased from $15,750 million to $19,687 million between Year 1 and Year 2 Green Caterpillar's total current llabilities balance increased from $2,363 million to $2,953 million between Year 1 and Year 2 Statement \#2: On December 31 of Year 2 , Green Caterpillar Garden Supplles Inc. had \$8,072 million of actual money that it could have spent Immediately. This statement is , because: The funds recorded in Green Caterpillar's cash and equivalents account represents funds that are elther cash or can be converted into cash almost immedlately Green Caterpillar's Year 2 cash and equlvalents balance is $20,317 The funds recorded In Green Caterplliar's accounts recelvable account represents funds that are elther cash or can be converted into cash almost immedlately Statement \#3: If Green Caterplliar ever goes bankrupt, its common stockholders will be paid off first, then lts debtholders and preferred stockholders. This statement is , because: Common shareholders are treated as residual Investors Debtholders and preferred shareholders are considered residual Investors Debtholders are treated as residual Investors 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 if the firm Issues $3 million of new common stock