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 Cold Goose Metal Works 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. Cold Goose Metal Works Inc Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Liabilities and equity Current liabilities: Assets Current assets: Cash and equivalents Accounts receivable Inventories $2,767 Accounts payable $0 176 996 $0 1,266 3,712 $8,437 1,013 Accruals 2,970 Notes payable Total current liabilities Long-term debt 937 $937 2,813 $3,750 Total current assets $6,750 Net fixed assets 3,515 $4,687 Net plant and equipment $8,250 Total debt Common equity Common stock 7,313 3,937 $11,250 $15,000 9,141 Retained earnings Total common equity Total liabilities and equity $14,063 $18,750 Total assets $18,750 $15,000 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works 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: Cold Goose's pool of relatively liquid assets, which are available to support the company's current and future sales, decreased from Year 1 to Year 2 This statement is because: Cold Goose's total current asset balance decreased from $8,437 million to $6,750 million between Year 1 and Year 2 Cold Goose's total current liabilities balance increased from $1,013 million to $1,266 million between Year 1 and Year 2 Cold Goose's total current asset balance actually increased from $6,750 million to $8,437 million