Aa Aa 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 Cute Camel Woodcraft Company 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. Cute Camel Woodcraft Company Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Liabilities and equity Assets Current assets: Current liabilities: Cash and equivalents $4,612 Accounts payable $0 $0 Accounts receivable 2,109 Accruals 1,688 293 Inventories 6,187 4,950 Notes payable 1,660 1,562 Total current assets Total current liabilities $14,062 $11,250 $1,562 Net fixed assets: Long-term debt 5,859 4,688 Net plant and equipment Total debt $13,750 $7,812 $6,250 Common equity: Common stock 15,235 12,188 Retained earnings 6,562 Total common equity $23,438 $18,750 Total assets $31,250 Total liabilities and equity $25,000 $31,250 $25,000 Given the information in the preceding balance sheet-and assuming that Cute Camel Woodcraft Company 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. Ch 03: Assignment- Financial Statements, Cash Flow, and Taxes Statement #1: Cute Camel'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 ,because: This statement is Cute Camel's total current liabilities balance increased from $1,688 million to $2,109 million between Year 1 and Year 2 cute Camel's total current asset balance decreased from $14,062 million to $11,250 million between Year 1 and Year 2 OCute Camel's total current asset balance actually increased from $11,250 million to $14,062 million between Year 1 and Year 2 Statement #2: In Year 2, Cute Camel Woodcraft Company was profitable. This statement is because: Cute Camel's retained earnings account increased between the end of Years 1 and 2 Cute Camel's total assets increased between Years 1 and 2 The cash and equivalents account increased between Years 1 and 2 Statement #3: The book value of one of Cute Camel's fixed assets is calculated as the original cost of the asset minus its annual depreciation expense. This statement is because: An asset's net book value is calculated by adding its annual depreciation expense to its total historic and installation costs An asset's net book value is calculated by subtracting its accumulated depreciation expense from its total historic and installation costs O An asset's net book value is calculated by subtracting its annual depreciation expense from its total historic and installation costs Based on your understanding of the different items reported else remains the same, then the cash and equivalents item on the current balance sheet is likely to increases the dividends paid on its common stock. on the balance sheet and the information they provide, if everythiing if the firm