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 $9,225$7,380 Accounts payable $0 469 2,656 $3,125 9,375 $12,500 $0 0 2,500 $2,500 7,500 $10,000 3,375 9,900 $22,500 2,700 7,920 $18,000 Accruals Notes payable Total current assets Total current liabilities Net fixed assets: Long-term debt Net plant and equipment $27,500$22,000 Total debt Common equity: Common stock 24,375 13,125 $37,500 $50,000 19,500 10,500 $30,000 $40,000 Retained earnings Total common equity Total liabilities and equity Total assets $50,000 $40,000 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