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.

Fuzzy Button Clothing 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 sheets for Fuzzy Button Clothing

Company for the years ending December $31,$ Year $2$ and $1,$ respectively.

Fuzzy Button Clothing Company

Balance Sheet

For the Year ended December $31$

Given the information in the preceding balance sheet$-$and assuming that Fuzzy Button Clothing 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.