2. Balance sheet The balance sheet provides a snopshot of the financial concition 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. Green Caterpiliar Garden Supplies Inc, is a hypothetical company: Suppose it has the following balance sheet items reported at the end of its first wear of operation. For the socond yeor, some parts are still incomplete. Use the information given to complete the balance sheet. Green Caterpiliar Garden Supplies Inc. Balance Sheet for Year Ending December 31 Given the information in the preceding balance sheet-and assuming that Green Caterpillar Garden Supplies Inc. has SO million shares of common stock outstanding-read each of the following statements, then identify the selection that best interprets the information conveyed by the baiance sheet. Statement \#1: Green Caterpilar's pool of relatively liquid assets, which are available to support the company's current and future sales, decreased from Year 1 to Yoar 2. This statement is , because: Green Caterpillar's total current asset balance increased from $18,000 million to $22,500 million between Year 1 and Year 2 . Green Caterpillar's total current liabilities balance decreased by $4,500 million between Year 1 and Year 2. Green Caterpillar's total current liabilities balance increased from $2,700 milion to $3,375 million between Year 1 and Year 2. Statement 2: Over the past two years, Green Caterplllar Garden Supplies Inc. has relied more on the use of short-term debr than on long-term debt-financing. This statement is becatise: Green Caterpiliar's total current liabilities increased by $625 milion, while its use of long-term debt increased by 51,875 milion. Green Caterpillar's total current liablities decreased by 5625 million, while its long-term debt account decreased by $1,875 million. Green Caterpillar's total notes payable increased by $156 million, whlle its common stock account increased by $4,875 million. Statement w 3: One way to interpret the change in Green Caterpalar's accounts receivable balance from Year 1 to Year 2 is that more customers purchased new items on credit rather than paying off existing credit accounts. This staternent is , because: The $675 increase in accounts recelvable means either that Year 1 's existing credit customers are not paying off their owed balances and Statement \# 3: One way to interpret the change in Green Caterpillar's accounts recelvable balance from Year 1 to Year 2 is that more customers purchased new items on credie rather than paying off existing credit accounts. This statement is because: The 5675 increase in accounts receivable means either that Year 1 's existing credit customers are not paying off their owed balances and new or existing customers are making additional purchases on credit, or that Year l's credit customers have repaid their owed balances and Year 2 credit sales have exceeded Year i's credit sales; The decrease from $3,375 million to $2,700 miltion implies a net decrease in accounts receivable and that more customers are paying off their recelvables balances than are buying on credit. The change from $7,920 million to $9,900 milion refects a net accumulation of new credit sales. Based on your understanding of the different items reported in the balance sheet and the information they provide, which stateosent regarding Green Caterpillar Garden Supplies Inc.'s balance sheet is concistent with U.S. Generally Accepted Accounting Principles (GAAP)? The company's assets should be listed in the order in which they are to be comverted into cash. The company's assets shouid be Listed in olphabetical order. The company's assets should be listed from those carring the largest balance to those with the smaliest balance